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Frank

Thanks for this, Elaine. I was beginning to get it, I think, but now it's quite clear.

The value of the yen has nothing to do with the carry trade existing. It is a byproduct of the Bank of Japan's lending policies. The plan is to keep things as close to 0% as humanly possible. The carry trade was not the goal, it is a development that arises from Japan having a 0% rate! It was ACCIDENTAL.

I kept wondering how the Wizards of Japan benefited from the creation of the Carry Trade. This makes it clear that its creation was not deliberate, not part of some frightfully clever plan!

DeVaul

Wow! All these numbers and financial schemes are making my head hurt. I really do not know what to make of it all.

I cannot believe people actually devote their lives to running these schemes and number games. There are so many other things to do in life, so many other things to learn and experience -- and to remember.

Why would so many settle for this?

Carlos

Market commentator Ray DeVoe Jr. [Jesup, Lamont – Edison, NJ] wrote a piece a few years ago titled “Restocking Count Zaroff’s tropical island with ‘the most dangerous game’ …and other financial games for the semi-skilled” about the movie – AND US Government statistics. Ray likened Count Zaroff’s rearranging the navigational lights and buoys around his island so ships will wreck and he will have victims to hunt to our government rearranging, obfuscating and flat lying about important financial statistics causing our economy to wreck.

So, my assertion is that the Cayman Islands statistics are bullshit – a made-up black hole of bogus holdings and un-verifiable numbers – probably of supposed treasury holdings that do not exist, of sales that were never made and of worthless GSE [FNM & FRE] bonds that were reportedly exchanged – transmogrified is a better word – by some alternative financial commentators, for Treasuries.

To simplify – the US dollar index has gone from $1.20 to $0.75 in the last 6 years of the Bush administration. For that alone he should be impeached.


John

"Why would so many settle for this?"

Being able to regularly partake of $5000/bottle champagne and $5000/hour hookers in a $20,000,000 private jet on the way to Club Med, if I had to take a guess. :-)

Big

Hi Elaine,

Do you have any comments on Jim Simons' Renaissance Hedge Fund, and how it seems to win all the time.

First, I thought they found the programmatic magic bullet,

Then, I thought they had all of their Ph.Ds develop some minority report system that peers into the future...

But then alas, I saw the lawsuits in which two MIT Ph.Ds that worked at Renaissance claimed that they were asked to manipulate the system and violate securities laws.

http://infoproc.blogspot.com/2007/07/
algorithm-wars.html
Gaining access to information that was not publicly available.

Sounds alot like Gollum Sachs winning because of their insiders.

Great post.

DeVaul

Hi John,

Perhaps you are right, but I rarely see these types of people. And I wonder how many there are out there that enjoy such things, and if they are always looking over their shoulders wherever they go.

Elaine Supkis

Devaul, they have BODY GUARDS. I loved that story about the hunter who was a Russian noble who rigged the game because he had body guards. The hero of that story had to first kill off the body guards before he could bag Zaroff. The history of rulers shows us one important thing: they love to kill people and love to do it while protected but not totally protected, they need the frisson of danger or they die of boredom. This is why they do hazardous sports and get killed by skiing or horses or drowning off their yachts, etc.


Or like poor Diana, destroyed in a crash while surrounded by maddened photographers. Shudder.

Big


let's hope you are not a royalist Elaine.

Diane, while not deserving her fate, knew what she was getting into.

Let's take all of the royals in every country and have them do Morgan Spurlock's 30 days, where he lived day by day as a day laborer...waiting by the side of the road for someone to pick him up.

I would presume they would slit their wrists mighty quick.


Chris

This article made me remember an old Michael Hudson interview on Counterpunch. It is interesting as it highlights the importance of the offshore tax havens for the power games the elites play:

http://www.counterpunch.org/schaefer03252004.html

DeVaul

Ok, well Ron Paul just stated for the record that he would cut all overseas military spending, close all foreign military bases, and bring home all troops from every foreign land as the EASIEST way to cut spending and balance the budget.

I could not copy and paste his comment here.

I may end up on the street, but I will vote for him.

DeVaul

The interview with him is on the Silver Bear Cafe. It would not allow me to cut and paste his answer, so go there to read it.

Al

DeVaul,
That's the way I feel too. Despite disagreeing with much of his domestic policy, ending the killing and winding down the war machine supersedes everything else. Despite what many think, an imperial presence is NOT in our best interests.

Elaine Supkis

He will probably be removed a la Kennedy, I think.

DeVaul

Yeah, I know. But, I will vote for him just out of principle. He did flatly state what he would do if he were president, and I do think he would back down from throwing millions of poor people into the streets.

His knowledge of our meddling in Iran back as far as the 1950's means he is capable of learning and acknowledging accountability.

That says a lot for him. Alas, he will never see the oval office.

If the CIA does not kill him, the Mossad will.

Al

Paul has specifically mentioned cutting off aid to Israel as he would to most other countries. As I'm sure you guys are aware. Haven't heard him called anti-Semitic though. Maybe it's part of trying to keep him marginalized. Yeah Devaul your Mossad comment is very apt.

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