Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyan Mailbag: Bermuda Triangle




Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next column with that very intent.


Trade deficit/ interest rates/ currency.

I'm puzzled as to what will hold the dollar together IF the Fed is now monetizing and foreigners are beginning to shun U.S. treasuries. When foreigners were taking the dollars from excess U.S. consumption and buying treasuries, the "excess" dollars were removed from the "float" and the dollar was protected from rapid devaluation.

IF foreigners now back off their U.S. dollar purchases and the Fed monetizes to keep interest rates low, doesn't that increase the global "float" of dollars? Or is the Fed also unconventionally shorting foreign currencies from Bahama headquarters?

Anxiously awaiting your esteemed insight.

Minyan Jeff


I quite frankly do not know what is holding the dollar up against Asian currencies, especially with rumors of revaluing of yuan (although I don't think that is coming anytime soon).

Against the Euro the dollar may actually rally as it is oversold and theoretically at least the interest rate differentials and economic growth add support to the dollar.

The yen has me confused, so I am just watching and reacting at this point. If the Fed is monetizing I suppose "they" can hold the dollar together for a while until there is outright selling from Asia.

Prof. Succo

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos