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B4 the Bell Toozleday Aug 31, 2004


Guest yobob1

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Surprisingly the US$ intervention that is pushing down yields is not coming from Japan:

 

Japanese monetary authorities refrained from intervening in foreign exchange markets in August, the Finance Ministry said Tuesday, confirming speculation that it has stepped away from yen-weakening operations since mid-March as the U.S. dollar remained firm

 

Kyodo News Service; Aug 31, 2004

 

The ministry, which releases monthly data on currency market interventions, said it conducted no such operations from July 29 to Aug. 27, extending the intervention-free period since March 17.

 

Japan used more than 35 trillion yen in the 15 months from January 2003 to stem a sharp rise in the yen, which hurts Japanese exports, the main engine of Japan's economic recovery.

 

However Japan does still accumulate dollars through normal trade flows.

 

The mystery of the moment is - if its not Japan buying dollars, then who is?

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Surprisingly the US$ intervention that is pushing down yields is not coming from Japan:

 

Japanese monetary authorities refrained from intervening in foreign exchange markets in August, the Finance Ministry said Tuesday, confirming speculation that it has stepped away from yen-weakening operations since mid-March as the U.S. dollar remained firm

 

Kyodo News Service; Aug 31, 2004

 

The ministry, which releases monthly data on currency market interventions, said it conducted no such operations from July 29 to Aug. 27, extending the intervention-free period since March 17.

 

Japan used more than 35 trillion yen in the 15 months from January 2003 to stem a sharp rise in the yen, which hurts Japanese exports, the main engine of Japan's economic recovery.

 

However Japan does still accumulate dollars through normal trade flows.

 

The mystery of the moment is - if its not Japan buying dollars, then who is?

Question: "Who has lots of dollars?"

 

Answer: "OPEC."

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Question: "Who has lots of dollars?"

 

Answer: "OPEC."

Good guess. The House of Saud makes no bones about it - it has publicly stated that it supports the House of Bush, I mean GWB, especially in this election period.

Even the 'radical' Venezuelean regime - whom GWB tried to push out - talks about making large investments in the US.

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heads up on INTC. Every hedge fund I know is short this stock in size. I think their business stinks and they may very well have no choice but to warn on Thursday. Still I am concerned about a short squeeze in this name.

have the 10 year whacking 3.90s minimum rog... your thoughts appreciated.

 

tia, john

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Question:  "Who has lots of dollars?"

 

Answer: "OPEC."

Good guess. The House of Saud makes no bones about it - it has publicly stated that it supports the House of Bush, I mean GWB, especially in this election period.

Even the 'radical' Venezuelean regime - whom GWB tried to push out - talks about making large investments in the US.

We are talking a trillion dollar a day market.

There has to be more then the Saudis at work here.

 

your thoughts on China?

TIA

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