A few thoughts: China’s US Tsy holding had been falling perhaps because they were selling $ to buy Yuan to keep it within in the prior band. Pretty much all exporting nation’s currencies have already weakened vs the $, including the Yen and Euro, so this is a bit of a ‘catch up.’ In a […]
Category Archives: Big Think
Geithner plan: Let them clip coupons
[Skip to the end] The Geithner plan is the latest move in what is shaping up to be the largest upward distribution of real wealth in US history. Its stated purpose is to provide high enough risk adjusted returns to attract ‘private capital’ at a time where risk perceptions are elevated. This means ‘market forces’ […]
Big think: Q and A’s
Response to questions from big think. Is fiscal responsibility essential to creating a stronger, more prosperous nation, or is the matter overhyped? Worse, the matter is totally confused. By identity, government budget deficits = ‘non-government’ accumulation of financial assets denominated in that currency. That means net savings desires of the non-government sectors can only be […]