• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Monday Market Movement - Dollar Dive Masks Market Weakness

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Mon, 10/04/2010 - 22:17 | 624913 RockyRacoon
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Good article -- and the links sprinkled throughout are the best part!

Each link is like a little Christmas present.

Mon, 10/04/2010 - 18:30 | 624620 max2205
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Crap. This looks serious. Please copy Ben so he can adjust the charts.

Mon, 10/04/2010 - 17:41 | 624554 Buck Johnson
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What China is doing is excellent from their standpoint.  They see much of europe (especially the PIIGS) are in serious trouble.  And by them giving them a helping hand by buying their bonds and/or investing in said countries, it makes these countries beholden to China (just like the US in many ways).  China want's advanced technology but the US is very finicky of giving this to them.  So what they are doing is going through europe and getting it from them and/or having them get it for them.  How can the US stop from trading advanced technology with europe, even europe has advanced technology.  Greece and the other nations don't want to do their severe austerity programs, not one damn bit.  If they can get someone to give them/invest money into their country it saves them from having to be essentially overthrown by their own people.

So lets play out a scenario, Greece is getting money from China.  It's investing in the country opening up lines of credit for ship production and now they are not having to do their austerity programs.  Later on China or chinese business men come to Greek business men or use the govt. to pressure business men to help them acquire certain things and technology for China.  If Greece can't get it they will get it via through other European countries through european laws governing essentially trade to all members.  And at the same time they come to Greece or when Greece is having trouble and say that they will forgive a piece of their debt that they owe to the Chinese if they sell them a few or handful of islands.  Greece has 1400 islands and only 227 are inhabited, so that leaves 1,173 islands that are up for grabs.  China wants land and resources and rare materials, because they know that in the future their will be a war for resources.  The Chinese aren't dumb, they are using this fake money and buying stuff that is needed for the future.

Mon, 10/04/2010 - 17:14 | 624505 Djirk
Djirk's picture

Nice move by China....throw a few peanuts to the Greeks only if they give it right back to keep employment in China.

Then they get some chummy PR before a big EU meeting.We will not sell EU bonds. Why would they, tasty yields backed by the ECB.

They can see longer term that after some austerity pain, the EU zone will be a vibrant lower debt market. And by the way the EU zone will be the biggest economy in the universe.

Take a play from that book ladies and gents.

Bullish on China long term.

Mon, 10/04/2010 - 17:05 | 624482 Djirk
Djirk's picture

WHOA after 30 years of debt accumulation, please please whatever you do don't allow a double dip and flush out the junk paper (accounting entries actually)!

Please just keep creating new debt until default and/or my purchasing power is destroyed. I can then try to find two jobs to pay the bills. Oh wait there are no new jobs.

Oh right, don't worry it's different this time, with the innovation of the internet we have a new economy.

Mon, 10/04/2010 - 15:43 | 624325 Dollar Bill Hiccup
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Phil is an interesting read. Though at one point a week or two ago he was on a rant about the banksters (saw it on Seeking Alpha) and I was thinking hmmm, wonder if he has a ZH avatar ... and then whammo, he starts showing up here.

Mon, 10/04/2010 - 15:04 | 624231 perchprism
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Marxist drivel.

Mon, 10/04/2010 - 16:35 | 624431 chirobliss
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Randian drool.

Mon, 10/04/2010 - 14:57 | 624210 masterinchancery
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Krugman "vilified by the right"?(As opposed to simply being wrong and non-factchecked 90% of the time.) Keynesian economics triumphed over classical economics? Are you from the planet Krypton?

Mon, 10/04/2010 - 14:32 | 624157 TraderTimm
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I'm still stunned we actually traded below Friday's low in the Dow. Of course, still plenty of time to ruin that party. (I'm just conditioned to accept the new 'normal', as depressing as it may be.)

Mon, 10/04/2010 - 14:18 | 624139 espirit
espirit's picture

and...as long as the insiders don't completely cash out, the HFT's will continually ramp the markets higher. They're fixing the flashes to recognize 15% or so of the trades to bait retail back in will even it up to support levels. So who's not happy?

oh yeah, GS wants $500B in QEII.

Mon, 10/04/2010 - 14:03 | 624110 Eric Cartman
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Tyler, I think someone hacked your server and is posting shit on your site.

Mon, 10/04/2010 - 13:54 | 624093 Eric Cartman
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I don't see how the DOW chart comparing the returns MOM to today is relevant? Now the FED can print as much money as they want to prop up asset prices. 

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