[lbo-talk] They're printing another trillion....

Marv Gandall marvgandall at videotron.ca
Sat Oct 9 05:50:00 PDT 2010


Aka "competitive devaluation". The Fed and administration want to drive the dollar down, especially against the yuan. It's what prompted the latest round of dollar buying by Brazil, Russia, Japan, Korea, Taiwan, etc. to counter the effects of further QE in the States, and what has caused an outbreak of speculation in the press about an impending global "currency war". We'll see if the Fed follows through. It could as likely be a pressure tactic to try and get the G20 to force another Plaza Accord on the Chinese. But China is more independent than Japan was in the 80's, and is revaluing the yuan at its own pace and in accordance with its own domestic needs.



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