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Carry Trade Analysis

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http://elainemeinelsupkis.typepad.com/money_matters/2008/10/elaine-meinel-2.html

Interesting points raised. Especially about the great depression being the end of British Empire domination, Depression2 is about the fall of the American empire and how it's unravelling.

She was one of the few people banging on about the carry trade back then. And also how our leaders sold us out in trade deals with Asian powers for bribes - they got capital, we got deficits.

Still we have the western banking class deluded by the notion that a US default will be worse for China than it is for America

That was a blast from the past. Her analysis of the yen carry trade makes more sense than ParticleMan's. Cheers for posting

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She was one of the few people banging on about the carry trade back then. And also how our leaders sold us out in trade deals with Asian powers for bribes - they got capital, we got deficits.

Or you can say the western consumers got some real stuffs, while those in Asia got (pretty worthless) papers.

More on these here and basically it WAS just Japan, now US, UK, Eurozones have all join the game and the real danger of these Carry Trade game is that if the money comes back on shore to buy anything and everything than the G4 will go into hyperinflation.

But the hot money is still with us. Today, instead of only one country – Japan – providing the near-zero interest rates that enable a carry trade, we have almost every nation except Australia competing for the interest-rate bottom. This has produced huge flows of hot money into the global liquidity pool. Although I haven't seen any figures published, the amount of available capital, despite a slower economy, is likely to be equivalent to the totals of 2007. When the damaged parts of split economies begin to come back, this liquidity will likely create a whiplash effect, throwing countries into hyperinflation before they can respond effectively.

http://www.globalprintmonitor.com/en/gpm-blogs/financial-crisis/29363-the-finer-points-of-global-economics#axzz0yPqi9oKU

Edited by easybetman

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Or you can say the western consumers got some real stuffs, while those in Asia got (pretty worthless) papers.

More on these here and basically it WAS just Japan, now US, UK, Eurozones have all join the game and the real danger of these Carry Trade game is that if the money comes back on shore to buy anything and everything than the G4 will go into hyperinflation.

You could also say that the asians got the chance to learn how to manufacture, the west got some years off work and then the race will begin again, with one slim athletic asian guy versus one great big fat yank and his chav english cousin.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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