House of Paine

more son of sky hook

 go into this cess pool
clutching 
 one over arching fact

a policy  punted 
plunging dollar
  
kills  two birds  

the euro corporatists
and their fricking 
social market rigging

 and 

the han bankers
with their
too dirt cheap 
          yuanulation
 

================================


The US dollar is set to continue 
its fall on money markets 
around the world 
following the meeting
 of central bankers 
and finance ministers 
of the Group of 20 (G20) 
held in Berlin over the weekend. 

--------- you bet buster
         full drop speed ahead!-----------------


While the fall of the dollar 
has been one of the main topics 
of discussion in banking 
and financial circles 
over the past months,
 it was not on the agenda 
at the meeting 

because 
of disagreements
 between the US and Europeans

-----what about sony?---------------

While the European powers 
are concerned that the falling dollar 
will hit their exports,

------ lets hope it does -------------

 
resulting in slower economic growth
there

--------- all else being equal 
        which it won't be 
if the euro's can off their fiscal deficit straight jacket -----------------
 
the US is insisting 
that no co-ordinated action
 need be taken on exchange rates 

------ right every one knows where its headed
               and the euros don't want to stop it
or they would have yuanified the euro 
but can't say that in public
cause that means you don't give
 a shit about the valuegrowth
 of your sovereign portfolio ---------------

and that they should be 
determined by market forces.

------ love this 
are the currrency ratios
CB managed
 or market dominated
and really unmanageable
u get a relentless
back and forth
 tick tock on that one
often in the same article----------

The Europeans maintain
 that the falling dollar 
is caused by the record 
US fiscal and balance of payments deficits 
and that the Bush administration 
should put its economic house in order. 

------- do u think little george's boys don't know that ?---------

The US, on the other hand,
 declares that the imbalances 
in the world economy,
 reflected in the US deficits,
 are caused by low European growth rates

------- ie elementary shit
if the euro economy grew  faster
no matter its current speed 
 it would pullin more imports without adding to exports the knock here is slower euro growth causes a surging us economy to run deficits :
         true ----------- 

which need to be overcome 
through “restructuring” 
and greater scope 
for the operation of “market forces”.


------no a simple dollar fall ought to do the trick
basically each side is chiding the other over a policy
in private they agree 
is necessary if euro wagery painful----------------



As a result of the conflicts, 
the communiqué which emerged 
from the meeting committed 
nobody to anything.
 
“We underscored the importance 
of medium-term fiscal consolidation 
in the United States,"

-remember attacking uncle's fiscal deficit 
know bush is back in
plays into bush's hands

the fiscal crisis 
will help reducesocial  spending 
(-period-) 
get it rangers ? 
this is pro rastlin
the inter imperial rivalry
has not ripened yet
to where real monetary conflicts 
will burst out 
into flaming tongues---
               ------------

 
structural imbalances 
in the US and global economy 
have  been highlighted 
by former US treasury secretary
 Lawrence Summers. 

In a lecture delivered on October 3,
 he noted that running
 at more than $600 billion annually 
and in the range of 5.5 percent of GDP, 
the US current account deficit 
represents more than 1 percent 
of global GDP 
and absorbs almost two-thirds 
of the cumulative current account surpluses 
of the world’s surplus countries.

------ okay now heres where
 a little global close system
 macro know what 
would help mr beam 
thru his horror story

he oughta read
his fellow canadian nobel laureate
       bob mundel
(bob was one of my teachers
though i must confess
i knew him in his golden gold brick 
"bullion bob" years
not when he was still doing 
front line small country  open macro work 
no by my era 
he 'd gone  seriously soft in the squash)

at any rate 
ole bob 
used to tell us
"hey some ones got to lose 
especially 
if there are guys 
who insist 
the always  need to win
and well 
better for every one
if the loser be 
 the richest player 
           right ?"---------------




Summers explained 
that even if the global economy 
grew in a balanced way,
 with imports and exports rising 
in proportion to the size of the global economy

----this is a terribly
miss leading assumption
 for normal global dynamics
to work well
the external sector 
needs to grow 
at least twice 
as fast 
as the whole system
and it usually does ---------


 the US balance of payments deficit 
would continue to grow. 

This is because US imports 
are around 16 percent of GDP 
while exports stand at 11 percent.

----- this is a garble 
some other hidden assumption is necessary here  
is he saying
he assumes 
us export share is also constant 
i hope not thats idiocy and tautology ---------
 
Furthermore, 
the US has a higher propensity 
to import than its trading partners

------ yes but thats an artefact
 of its global big spender of last resort role
seen now mostly in our insane han-nip shit  buying ----------
 
This means that even if the US 
and its trading partners grow
 at the same rate, 
US imports will increase 
at a faster rate than exports, 
thereby widening 
the balance of payments deficit

------ right so what else?
ya  punt the buck dick 
and thus change the dynamics ------------

Noting the increasing role 
of the East Asian central banks 
in financing the US deficit

—they currently hold 
around $1.8 trillion 
in foreign currency reserves

—Summers drew attention
 to what he has previously 
described as 
the “balance of financial terror” 

-this summers kat is wall street bobby rubins ass hole buddy 
and a real live ivy league cock sucker ----------


 On the one hand the US depends 
on an ever-larger inflow 
from the Asian banks 
to finance its deficit
 
while on the other the lenders,
 despite incurring losses 
on their investment 
and exposing themselves 
to greater financial risk 
are afraid to withdraw 
their funds lest they set off 
a financial crisis.

------- yes a quid pro quo
that is neither balanced or terrifying ------------

-------------------------------- 

global financial 
 conflicts appear 
to be deepening.

In an analysis of the G20 meeting, 
an article 
in the Australian Financial Review 
noted:

 “Squabbling at the weekend’s 
G20 finance ministers’ 
meeting and unusually candid comments 
from ... Alan Greenspan can only mean one thing:
 America’s unilateralism under 
President George Bush 
has extended beyond foreign policy 
to economic policy. 

--------total none sense 
just read summers above this is a dynamic grapple
both sides push at each other
but no one wants the dealings to end
or they'd simply walk away
thats unilateralism
by the way 
trade can never be unilateral
of course not 

buying without selling or selling without buying
requires credit
there is no question 
credit polcy
unlike trade policy
can get away with
 one sided -ness
possible unilateral action
in fact is the heart 
of  
investment and credit ----------


Having lost hope that market-opening 
reforms on Europe and Japan 
that will boost exports 
and reduce its current account deficit,
 the US is taking matters into its own hands.”


-------- no it can't buster 
   sorry the euro bankers are playin along here
 again this is studio rastlin fanz
not for real in any obvious sense ----------
 
“The US knows what it needs,
 and Japan and the Europeans
 can moan all they like.”


--this bully boy stuff 
    plays well down under ----------


---------------------------------
Signs of increased tensions 
were clearly in evidence 
in the wake of the G20 meeting.

 In an interview 
with the Financial Times published today, 

the deputy governor 
of the People’s Bank of China,
 Li Ruogu,
 made it clear 
that China would not be rushed 
into revaluing its currency

—a central demand 
of both the US and the European powers.

Ruogu warned 
the US not to blame other countries
 for its economic difficulties. 

“China’s custom is that
 we never blame others 
for our own problem. 
For the past 26 years, 
we never put pressure 
or problems on to the world.
 The US has the reverse attitude,
 whenever they have a problem, 
they blame others,” he said.

---more heel v baby face 
      bluster for uz  geeps -----------


China’s trade surplus 
with the US was more than 
$120 billion last year 
and has been increasing 
at a record rate,
 rising by more than $15.5 billion
 in September 
and $15.4 billion in August.

---- time the  yuan soared?
like the yen after plaza '85  --------------
 
The US has been demanding 
that this imbalance be addressed 
through an upward valuation 
of the yuan
 and eventually
 full currency flexibility. 

--part two is agreed to already 
and is a straw dog here -------------

But Chinese authorities fear
 that if the present regulatory regime 
is abandoned too quickly
 this will lead to a crisis 
in the banking system 
where some estimates
 put the level of bad loans at 40%

----------- a partial truth
worse then a lie ----------


=======================================