House of Paine

more interlocuting

my latest
two questions
to my 
stand up guy
          insta pundit 

 "answer yes or no.....


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


1)   " the college of central bankers "
         has the capability to sustain
       a very majestic  
                    slow 
                time comsuming 
                ruffle and roil min
                         dollar 
                          adjustment?

            despite
        unbounded 
             n plus (% of gdp)
              external   payment   deficits
                    and wildly craven 
                private speculationary activity ????

2 )  if so
             if the CBers 
           can  weather and prevail
        why would they ever 
         be motivated to act 
             in any other way????


-------------------------------
 the answer:


" 1) -- not sure.  
 depends as you note 
on degree of private activity "

------ he gives some numbers ...-----
  
"there are something like 
$10 trillion debt claims 
on the US
 and $ 7 
trillion are private "


  "the US needs $800 b 
  of new financing a year"
   
"if a big fraction
 of private speculators 
got convinced the central bankers 
could not hold the fort
 and started to pull their funds 
out of the usa.....
 
they would put 
a lot of pressure 
on the bankers"

 2) " everything has a cost"

  "buying high and selling low 
is usually not 
a winning strategy"

" and that is what 
a lot of central bankers 
are doing"
  
"plus
 there are domestic monetary implications
 of massive reserve 
accumulation"

"to turn it around
 if using the central bank 
to provide an export subsidy
 to 
your exporters 
is a such a no brainer
 winning strategy

 why didn't
 more people 
do it before now?  

" there is something very new 
about $500-600 b of global 
reserve accumulation"

"cheers"

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