{"id":199092,"date":"2007-09-10T13:03:00","date_gmt":"2007-09-10T18:03:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/09\/10\/remember-what-i-said-about-currency\/"},"modified":"2007-09-10T13:03:00","modified_gmt":"2007-09-10T18:03:00","slug":"remember-what-i-said-about-currency","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/09\/10\/remember-what-i-said-about-currency\/","title":{"rendered":"Remember What I Said About Currency?"},"content":{"rendered":"<p>I said that an downturn would force the Fed to push interest rates down, and that this would <a href=\"http:\/\/40yrs.blogspot.com\/2007\/07\/dollar-mixed-after-new-low-vs-euro-what.html\">hose the dollar<\/a>, leading to a falling dollar, and from there import driven inflation, as the cheap crap we buy from Chins becomes more expensive.  Well, Richard X. Bove, a respected analast for Punk Ziegel &#038; Co.<a href=\"http:\/\/money.cnn.com\/2007\/09\/10\/markets\/bc.apfn.liquidity.aheado.ap\/index.htm?postversion=2007091008\">has just written the same thing<\/a>.<\/p>\n<p>He&#8217;s saying that cutting interest rates to help salvage mortgage lenders will not save them because, &#8220;Lower interest rates will send the dollar into a tailspin and wreak havoc in the job market.&#8221;<\/p>\n<p>Nice catch 22, but it gets worse, <a href=\"http:\/\/money.cnn.com\/2007\/09\/11\/news\/international\/china_inflation.ap\/index.htm?postversion=2007091105\">Chinese inflation is surging<\/a>, it just hit 6.5%, the highest rate in 11 years.<\/p>\n<p>This means that their central bank is going to have to boost interest rates, which will strengthen the Yuan.<\/p>\n<p>Of note, food was a primary component, 18.2% year over year (Pork 49, cooking oil 34.6 %, eggs 23.6 %, fresh vegetables 22.5 %), and this will lead to civil unrest, probably to coincide with the Olympics, unless they reign this in aggressively.<\/p>\n<p>This is going to get ugly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I said that an downturn would force the Fed to push interest rates down, and that this would hose the dollar, leading to a falling dollar, and from there import driven inflation, as the cheap crap we buy from Chins becomes more expensive. Well, Richard X. Bove, a respected analast for Punk Ziegel &#038; Co.has &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,1080,973,1016],"tags":[],"class_list":["post-199092","post","type-post","status-publish","format-standard","hentry","category-bubble","category-currency","category-economy","category-international-commerce"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199092"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=199092"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199092\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=199092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=199092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=199092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}