Monday, November 22, 2004


The Yen Lowest Since April, 2000

The USD to Yen just went to the lowest since April, 2000. Right now about 103 yen equal $1 US. Based on a chart in Monday’s Investment Business Daily, Jim Sinclair at Jim Sinclair's Mineset using technical analysis wonders if .7 yen to the USD is in the future. That could do wonders for our trade with Japan, but what happens to their USD holdings. The Japanese face a tremendous loss on those dollars. Selling dollar holdings could cause interest rates to rise, significantly. The real problem for the US are the Chinese reserves in dollars. Already, individual Chinese are exchanging their dollars for Euros. The Chinese currency is very undervalued vs the USD and needs to be revalued. Until the world forces the Chinese to revalue, we are very vulnerable to blackmail. Thus the CYA from Greenspan in Frankfurt on Friday. A lot of the blame falls on his shoulders. Maybe, when President Bush admitted some mistakes in appointments to his adnministration, he was thinking of Greenspan not Powell.
Mover Mike

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