What is with the Forex Market this week??? - page 2

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hi

for me this business all about system and knowledge ...if you've your own system and more knowledge then money will follow ...is it right ?

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Forex Indicators Collection

 

You are correct. Knowledge first and money will follow. But sometimes it takes very long time and waste much money before we can make money.

Prof

 

China has many trade issues, and a relatively low currency is one of them. On the other hand, the actual owners of many factories are multinational corporations from other places. China does not own it's means of production, and that has to annoy some communist tendencies. They also want a middle class, are experiencing a real estate bubble fueled by private investors and revenue for municipal governments. A deep concern of mine would be China nationalizing the foreign owned factories. (Not even a new move, and probably more acceptable than dumping $1.2 trillion in TBonds.)

The issue with Japan's interest rate is massively compounded, they can't afford to pay any interest due to the large quantity of bonds. I seriously wonder what the exit strategy for the Japanese government is going to be on all of those bonds. So far it has been "more bonds", but they need a large number of new bonds just to keep the economy in its current position. I don't think think the Yen will be a global player in another 10 years, but China could be. I wonder how much of the strength of the Yen is tied to a handful of companies (Sony, Toshiba, Toyota, Honda) instead of a large aggregate (massive amounts of exports from China). The physical manufacturing for Japan seems to be migrating out more and more.

It seems strange that we're heading into a depression, and they want to start policies that will drastically increase the cost of prices. A strong Yuan is a cliff to the US economy.

 
 

What options do you think Japan has in the future? Govt Debt = 176% GDP vs 64.7% of GDP in the US. (CIA Factbook as source) It appears to me most of the Japanese debt is held by the private citizens, while most of the US debt is held by foreign countries. (12% of the 10 trillion US debt held by China)

A stronger Yuan hurts the US more relatively than China, since we don't really export to China (music, movies, some tech = 4.6% of $1t) but Japan does (13.4% of $590b). Both countries have a large import basis from China, and both will loose (but Japan less so).

I think most of the exports listed for the US are actually fake, based on accounting rules. Japan would appear to be affected by a global recession/depression as well, and the US is deep into the beginning of one (we just haven't made it common knowledge yet).

 
 
TOKYO (Dow Jones)--The Bank of Japan said Wednesday it is supplying Y400.0 billion against pooled collateral at its headquarters through an operation for same-day settlement in an agreement expiring Jul 2. Tokyo Bureau, Dow Jones Newswires; 813-5255-2929

And ???

 

Linuxuser, what does that mean? (I need food, not thinking too clearly.) Pooled assets... it sounds like they are bailing out a securities trader. Do you know what the money is being spent on?

 
 

I don't know...I might be oversimplifying this thing...

But Cable has been bouncing off 2.0000 to the USD for a couple of days and that's why it has flattened out. 2.0000 is a psychological barrier. I'll bet it'll soon shoot right on through it though. And if it doesn't, it'll take a modest dive first.

(How's that for covering all the bases!)

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