Another Week of FX Records and pulling a Macro Man on you ...
As markets end another week in record land epitomized by the ever so violent trouncing of the USD and as time is becoming a really scarce resource in my life because of four exams encroaching on my schedule I feel inclined to pull a Macro Man on you*. You see, us econ bloggers we have special powers which allow us to sometimes listen in on what the markets say in a quite frank and clear tone. This time I have been around indeed. From the dark vaults of the world's SWFs to the world's central bank asset management departments over to the retail/commercial investors' FX trading desks I have been listening keenly to the songs being chanted. Nobody wants the Dollar and all the credit market woes attached to it it seems and, for the life of me(!), if I could remember the name of that shedding card game I could really get flying with the methaphors. However, I have other tricks up my sleeve and as such the tune I heard could not be clearer which has made me think whether I should start listening even more to Stereophonics than stearing into my PC screen.
It's beautiful, I'm a fool, tried to save you from the
Rainy days Looking back down the track I'm the one who carried
All your weight
Yes you lie all the time and I don't believe you
Ba ba ba, ba ba ba, ba ba ba ba
Dodging blame catching planes ride my tail to freedom
Ba ba ba, ba ba ba, ba ba ba ba
You don't know what it is you got
You don't know where you're going
You don't know what is right from wrong
All that you do is lie so
Just get out of my life
You're passing the buck
Get in, just hold up your hands and take the shame
Just get out you're lying again take the blame
Just get out of my life and be a man
Yeah yeah yeah
Look at you, what you do? My ears are burning from the
Tales you spin
Cracks me up that you love telling people all the lies
You made
I'm the one that tried time and time again to please ya
Ba ba ba, ba ba ba, ba ba ba ba
Forgetting me and misery, what did you ever give me
Back?
Ba ba ba, ba ba ba, ba ba ba ba
Yeah yeah yeah
You don't know what it is you got
You don't know where you're going
You don't know what is right from wrong
All that you do is lie so
Just get out of my life
You're passing the buck
Get in, just hold up your hands and take the shame
Just get out you're lying again take the blame
Just get out of my life and be a man
Of course, at some point it may not be the Buck which is passed on but something else but let us cross that road when we get there. Returning to seriousness for a bit Bloomberg carries some nice reports on the current action; one on how the Yuan is rising somewhat faster against the USD than has traditionally been observed and then of course one which highlights how the Yen is fast approaching 105 a Dollar which is basically intervention territory. More formally, I am thinking a lot at the moment on this whole shift in global liquidity and capital flows and where this is all going. Moreover, I am not alone and my friend Edward has also been thinking a lot and if you want to understand what is really going on at the moment, my suggestion is that you read his latest note over at Japan Economy Watch. More to come later.
*This might be one of those internal of internal jokes which is only understood by the author himself (i.e. me). But apart from being serious, to the point, and very sharp Macro Man also sometimes indulges in more metaphorical and loose narratives and this, as it were, is the reason of the title of this post.