Zeev's Turnips Patch-No Politics (ZEEV)

[otraque]

This is what Walter Nightingale was pounding about 6-weeks ago, that being globalization cooperation be damned, the Euro and Yen dependent will fight like hell to keep their currency value down relative to USD, and they will succeeed was his opinion.
Roach <<At this point, the handwriting is on the wall: Politicians and policy makers around the world have played their cards. They are leaning forcefully against the fundamentals of currency adjustments that might otherwise be expected from the fundamentals of global rebalancing. In effect, the authorities are drawing a line in the sand against a further decline in the US dollar and a related appreciation of the yen and the euro. While that may delay rebalancing, it only heightens the possibility of a far more treacherous endgame for an unbalanced, US-centric global economy. As I see it, the longer the world avoids the imperatives of a US current-account adjustment, the greater the possibility of a wholesale flight out of dollar-denominated assets>>