Posts by "cat0nip"

tp 427 ... big jitters in Ezone banks...dunno stand ready to short again

news of big explosion in Oslo government house severly damaged talks of terrorism

All correct from theory of money. Especially QE acts deflationary and ECB has apparently been founded on political contracts assuming a kind of gold standard ( Maastricht stability criteria etc.) . Further , eventually there will be one and only one world currency not neccessarily implemented on notes and coins. It could just be "information" .No good prospects for fx traders. No good prospect for "capitalism", either.
Nevertheless for the time being, the fixed exchange convertible regime is actually traded.
That is currency is money and hence an asset to own and hold.
Thus the question is how is the conversion , that is the price of a currency in terms of another currency determined. Basically, the present value is determined by expectations of value in the future. This is kind of a hyperset logically and a function which has itself as argument mathematically, the latter more usable and known as "chaotic".
But in practice I think it is just value at risk and hence depending on boundary conditions.
While apparently a set of differential equations exists, the focus is on determining boundary conditions..

After thr roaring applause ceased EUR relative strength falls.

but this isn't real time. When you have the inverse of yield the price real time you'll see that the bond prices lead both USDx and DOW. Price down USDx down stocks up and vice versa.
I love functions. This is one.
I bet EURUSD will start to drop June 9th when the market realizes ECB is bankrupt.