from gold eagle

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    From Gold Eagle.

    Today's action: A masterpiece by marky Mark of CapitalStool forum
    (richard640) Feb 13, 17:01
    Posted: Feb 13 2004, 03:02 PM
    Today, the BOJ and the ECB exhibited an Epic Show of Force, coordinated by the John Law II HedgeFund.

    As the trade deficit and confidence numbers sent the dollar rolling into the Abyss, and gold launched higher, a huge Global Intervention took place to Stick Save the hapless U.S. Peso.

    From CBS Marketwatch:

    Rumors swirled through the markets that the European Central Bank or another European national bank had sold euros to drive the single currency lower.

    Gary Noone, a currency analyst at MMS in London, cited speculation that German banks were acting on behalf of the Bundesbank or European Central Bank.

    "I'm confident it was not the ECB," said Marc Chandler, an analyst at HSBC in New York. He said large traders sold as much as 1 billion euros through a German bank, thus fueling the rumors.

    The move had all the trademarks of central bank intervention, another analyst said. "This is way greater than any profit-taking when the currency drops 1 cent in less than 15 minutes," said Ashraf Laidi, chief currency analyst at MG Financial in New York.

    Once again, the John Law II HedgeFund has proven that it is bigger than the markets.

    Any and all financial dislocations can be and will be arrested.

    Turn on the printing presses, grab the confetti, and start throwing it into the Open Mouth of the Derivative Colossus, staffed with young GameCube traders, able to use the free money to buy or sell futures with lightning speed with .001 second executions.

    For any impaired asset, there is a willing buyer. The Federal Reserve Open Mouth.

    For any currency, regardless of the trillions of volume traded per day, there is a Central Bank which is bigger than the market, able to turn the tide in another direction.

    Of course, the Central Banks are able to profit on these trades, since they are given the "heads up" in advance by Al Leeson.

    Even third world countries are being heavily recruited into the John Law II HedgeFund.

    Especially China.

    Why not? Such easy profits to be had. Minute by minute scalps and trades, using billions of dollars, taking it out of the hides of the private speculators.

    For any Central Bank who wishes to particpate, its Free Trading Profits.

    Waxie would be jealous.

    From today's Wall Struck Journal:

    "Beijing may soon allow some of the nation's social-security funds to flow into overseas equity markets, easing pressure on the yuan."

    "Grappling with the unintended effects of rapid economic growth, China's central bank is seeing its options narrowed by the current dollar peg. The People's Bank of China must purge foreign currency from the system with twice a week "sterilizations" by buying dollars from commercial banks, replacing them with yuan and then issuing to the banks short-term bills to sop up the money in circulation. Yet they can barely keep pace with a flood of foreign exchange that swelled reserves last year by $160 billion."

    So there you have it.

    The Perpetual Motion Machine, designed and built by the John Law II HedgeFund, guarantees prosperity by choking the globe with U.S. Dollars.

    The more U.S. Pesos which are created out of thin air, the more are sent to China, who seeks to offload them by roundtripping them back to the U.S. Stock and Bond Markets.

    A Virtuous Circle.

    And of course, higher stock prices are self-validating.

    Higher stock prices mean a better economy, which means higher weekly store sales at WalMart, which means more production for China, which means more U.S. dollars sent there, which means more roundtripping of those dollars back into U.S. T-Bones and stocks, fueling lower mortgage rates, higher stock prices, and further acceleration of consumer spending.

    Quite simply, an Economic Miracle.

    And nothing can stop it, as long as the Central Banks remain bigger than the market, able to execute a massive Show of Force to any and all speculators betting that this Ponzi Scheme can be taken down.
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