INCLUDE_DATA
Email This Post
Print This Post
As the US increasingly moves closer to becoming a net exporter, by intent and also since the PBoC and BoJ are reducing vendor financing in the form of purchasing US treasuries, the US current account may move into surplus against China and Japan. This would mean a shortage of USD to recycle which would mean a further withdrawal of demand for US treasuries. If the PBoC and BoJ fail to support a treasury auction long rates could spike.
The current movement of trade flows and capital have us moving in that direction.
One Response
Jonathan Campbell
15|Oct|2010 1Hi Bryan
Very impressed by your work and was wondering if you would be interested in contributing to a new site: http://www.caymanhedgefunds.com on behalf of our client? Can you email me (jonathan@selectpeople.ie) to discuss further?
I look forward to hearing from you.
Jonathan
Leave a reply