In a message dated 5/11/2006 7:40:32 P.M. Eastern Daylight Time, [EMAIL PROTECTED] writes: foreign exchange imbalances, that are being "contained" by state intervention, to commodity prices and then back to financial markets.
How are they being "contained" by the state? If you are thinking of the Chinese peg, then an un-pegging of the RMB would lead currency speculators to shorten the dollar for quick trading gains. Commodity speculators are basically playing with fear mongering from Bush's nuke threats to Iran, from an intensifying Iraq war, from a new wave of nationalizations in SA, from workers strikes in Africa, etc, to make a quick buck. As for the stock market, its present ups and downs are related to the inability of the top players to make up their minds about the direction of Bernanke's interest rate policy. Cristobal Senior
