2-yr Treasurys offer a yield higher than the FedFunds rates
we have some powerful nasty forces working under the surface now with this "FF spread"
if you are a friend of Bill's, you can borrow shitcheap money at 1.6% and invest it for 2% on the 2YR
this spawns some Treasury carry trade, powerfully coercing the Fed to lower interest rates
but they wont
because Sir Alan is powerless and dickless
we have some colossal forces working against the USdollar now
another carry trade is the dollar-euro
borrow 1.6% in shorterm US$, invest in longerm EuroBonds paying over 5%
these carry trades can be supercharged via futures contracts
they call them hyper-carry with 30:1 leverage
the dollar will be yanked down horizontal faster than a horny cheerleader as long as these carry trades are available
I have been psyched all evening long pondering that wonderful JYen chart posted earlier, indicating a surprise yen bull rally to rip the dollar's nuts off
we could see simple dollar-yen carry trade here, once it gets going
go gold, show no fahking mercy !!!
/ jim
