The goings-on this past weekend were something. Every time I would
pull up the news, I would find more quotes and statements that would
potentially move the markets come Monday morning… One of the big ones
was our president telling the Chinese: “Enough is enough”… Oooohhhh… I
bet the Chinese are shaking in their boots… Look, I’ve talked about this
before… You know the “biting the hand that feeds you” thing… Does the
administration (and lawmakers) truly believe that China will not get
ticked off, and choose not to attend the next Treasury auction? What
happens if they do? Well, we all know what happens, as I’ve been through
all that before; but let’s just pretend that will never happen, that’s
best you know, stick our heads in the sand, and forgetaboutit! NOT!
That’s not going to happen as long as I have a laptop and an Internet
connection!
And then there was Chinese President Hu Jintao, trying to get this
message through to the US administration and lawmakers… “The US Trade
Deficit and Unemployment are not caused by the yuan exchange rate, and a
‘large’ appreciation in the currency won’t solve US problems.”
So… The markets have something to talk about this morning, other than
the Eurozone problems… Italian PM Berlusconi finally stepped down this
weekend, and that has allowed the Italians to form a new government,
which will be led by an economist named Mario Monti… The markets liked
the resignation of Berlusconi, and the euro (EUR) was allowed to rebound a bit on the news.