However, the communique basically said nothing, except this time it said more nothing than it usually says. If that sounds confusing, please understand, so do the G-7 communiques.
Basically it was the same platitudes like "there must not be these currency fluctuations", which is doublespeak for everyone, but Bernanke, saying they've had enough of the dollar falling. Other "reassurances" were that the same stimulus of fiscal and central bank policies would be continued. Which is another way of saying - hey everyone, we're still in deep scat. Some economists would say this is an indication that we have a price deflation. Of course, they've been saying this for the past year and prices are still going up. < See the Oct 2 article at this website "On the Light Side - Guido Saw It, Guido Kicked It". >
Trichet, the European Central Bank president, said he thought the G-7 closing statement sent a "strong message" Strong message to who, Jean-Claude? To currency speculators?
Because essentially, this "strong message" is nothing more than an indication that these guys have agreed on nothing. Disunity among central banks usually brings strain to the currency markets.
By a "remarkable coincidence", there also seemed to be a bankers' "conference" at the same time in Istanbul. It wouldn't surprise me at all, if it was across the street from the G-7 conclave. From what little information is available, the purpose of this supposed "bankers conference", was to make sure the G-7 didn't come up with any ideas of increasing capital controls for these banks. Which is another way of saying, the banks don't want to be forced to be more responsible. < Gee, I wonder if it was indirectly taxpayer money that paid the travelling expenses of these bankers? >
The economic / financial crisis still exists. If anything, it has gotten worse. Public officials seem unable to solve the problem, because they're using the same policies that got us into this mess in the first place.
Expect it to get worse. Let's see what happens Monday - with currencies, gold, commodities, and financial markets in general.
No Guido guesses on this. Seriously, folks, like everyone else out there, I have no idea what might happen or what crazy thing Bernanke may do. Anyone who tells you differently, is either existing in an illusion, or should be making their living singing ballads.
Good luck next week.
"Buy when there's blood in the street." - Baron Rothschild < The Baron literally did mean buy when there's blood in the street. And I guess the more blood, the more opportunity. >
< As always, this article is for information purposes only. It is not a recommendation or otherwise investment advice. Please see the disclosure at the bottom of the web page. >
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