Thursday June 14, 2007 - 10:28:26 GMT
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Black Swan Capital - www.blackswantrading.com
Helen Keller Lives
ā¢ China's industrial production rose 18.1 percent in May from a year earlier, the National Bureau of Statistics said today, after gaining 17.4 percent in April. (Bloomberg)
ā¢ U.K. retail sales climbed 0.4 percent after a 0.1 percent decline in April. (Bloomberg)
ā¢ Key Reports Due (WSJ):
8:30a.m. Initial Jobless Claims. Expected: +6K. Previous: -1K.
8:30a.m. May Producer Price Index. Expected: +0.6%. Previous: +0.7%.
8:30a.m. May PPI, Ex-Food And Energy. Previous: Unch.
10:00a.m. DJ-BTMU Business Barometer. Previous: Unch.
āBefore you embark on a journey of revenge, dig two graves.ā
FX Trading ā Helen Keller Lives
It is to laugh! This from Reuters yesterday after the US Treasury report that failed to label China as a currency manipulator:
āThe US Treasury noted China's currency was āundervalued,ā but said it was āunable to determine that China's exchange rate policy was carried out for the purpose of preventing effective balance of payments adjustment or gaining unfair competitive advantage in international trade.ā
What a joke? Itās not even a question whether or not China manipulates its currency. The only question is whether or not a revaluation of the yuan is good for the āglobalā economy. US policy is effectively about the āglobalā economy, not necessarily whatās good for the US. Everyone is āglobalā nowādonāt you know. I think we can all understand. Mr. Paulson and Co. know itās not time to rock the boat when thereās $415 trillion of derivatives it the market, predicated on low volatility and smooth sailing in the āglobalā economy.
We all must bow down to the āglobalā economy and bend over to the mantra of āfree trade.ā No matter that China restricts all kinds of access to Western goods and servicesāand counterfeits the heck out of those it lets in. Itās āfree tradeā donāt you know. Yes, I know itās impolite to criticize China for they are all goodness and light in the eyes of the intelligentsia who are already well ensconced with real asset there and have many other major deals pending. After all, itās about the āglobalā economy and āfree trade.ā
Was news the US Treasury Helen Keller is alive and well and running the US Treasury a green light to sell yen? If China isnāt manipulating its currency, than any angst over the Japanese yen is completely unjustified. After all we know China builds massive reserves during its currency manipulation process. So much so that it has plenty left over to place with a key intelligentsia member named Blackstoneāand maybe some others we donāt know about. There are no signs the Bank of Japan has entered the market for a very long timeāit hasnāt needed too.
We noticed $-yen held very firm in the midst of some very heavy volatility last week. Did someone know then about Helenās new role at Treasury? Noā¦weāre sure nothing like that happens in this world where information flows freelyāalmost as freely as trade flows out of China.
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