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Re: Looks like Paulson and Bernanke have to get up early today!
The interesting part of what is happening today is if indeed we're in 'Beggar thy neighbor' stage - then US is losing with Japan losing even faster.
Across the board Japanese companies are suffering - my suppliers in Japan are now pathetically eager for any business of any kind.
The Yen strengthening is going to affect that economy like crystal meeting a hammer - note that the Yen has been strengthening vs. the dollar even as the dollar has been strengthening!
Another interpretation is that carry trades are unwinding both due to exchange rate feedback and deleveraging.
At the same time the yuan/US$ rate has basically been unchanged - but again this affects China's competitiveness as the US$ is going up.
From one point of view, Europe is the big winner if we're at beggar thy neighbor although certainly some luxury oriented companies like Daimler are going to suffer.
Going to be a very interesting end of year.
The interesting part of what is happening today is if indeed we're in 'Beggar thy neighbor' stage - then US is losing with Japan losing even faster.
Across the board Japanese companies are suffering - my suppliers in Japan are now pathetically eager for any business of any kind.
The Yen strengthening is going to affect that economy like crystal meeting a hammer - note that the Yen has been strengthening vs. the dollar even as the dollar has been strengthening!
Another interpretation is that carry trades are unwinding both due to exchange rate feedback and deleveraging.
At the same time the yuan/US$ rate has basically been unchanged - but again this affects China's competitiveness as the US$ is going up.
From one point of view, Europe is the big winner if we're at beggar thy neighbor although certainly some luxury oriented companies like Daimler are going to suffer.
Going to be a very interesting end of year.
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