"...William Pesek penned an article with a catchy title “Hedge Funds ATM Moves From Tokyo to Washington” that further publicizes the new Dollar Carry Trade. A more complete analysis of the Dollar Carry Trade, combined with the commercial threat from lost Petro-Dollar advantages, are covered in the October Gold Report for the Hat Trick Letter. Pesek describes a central point shared by my analysis, the handoff from the Yen Carry Trade. The USDollar will be kept down for both valid fundamental reasons and speculative trade forces. He warns about a trade war further adding burden to the USDollar. He concluded, “The dollar carry trade says nothing good about confidence in the US economy. It is also a reminder that the side effects of this crisis may be setting us up for a bigger one.” All his points are precise, powerful, and poignant. He is a fine analyst. See the Bloomberg article (CLICK HERE).

Enrico Orlandini hails from Peru. He (actual name Eric Bartoli) apparently enjoys the opportunity to hide, especially from investors like a couple Hat Trick Letter subscribers whose money he absconded with. It is not for me to say he strives to become a fraud king like Wall Street elite. But he does issue some occasional great quotes, firm analysis, and newsworthy items. He recently provided this gem from his backyard. Latin American governments are issuing US$-based debt and converting to local currency bonds. Apparently, the nations in South America intend to hold the converted bonds as investments. They are running an active carry trade, whereas the Europeans passed off the risk to the credit derivative market. Orlandini wrote, “Many Latin countries are issuing US dollar denominated bonds and converting those bonds into local currencies, betting the dollar will devalue considerably. Many Latin nations did the opposite back in the late 1980s and early 1990s when the Peruvian, Bolivian, and Ecuadorian currencies collapsed when they made fortunes. I view the new Latin carry trade as very dangerous, since most Latin economies are on the decline and the Latin propensity to print fiat currency is legend. Furthermore success is dependent on finding a good yielding investment, and those are hard to come by right now. Carry trade in other parts of the world simply convert dollar into local currencies, or local AAA bonds, and let nature take its course. The object of the bond emissions in Latin America is for investment, and will not be as easy as everyone thinks. So far Peru, Venezuela, and Brazil are going down this path.”

http://www.financialsense.com/fsu/editorials/willie/2009/1021.html