Several of us have used that exact phrase on the blog of late, “it’s all just one trade”, in this case, short the $. The Rosenberg view of the world is that deleveraging is incomplete, inflation is over-stated, Treasuries will stabilize, and we will see another $ rally this summer. I agree. The funding crisis and bond market blow-up comes later. The consequences of that event will be dire, and as usual California is now giving us a preview.

” For his part, Treasury Secretary Geithner greeted this economic news warmly while in Beijing today. He’s all smiles these days, but remember last winter when he used to bark about the Chinese and their nefarious “currency manipulation”? His new role as lap dog won’t allow him to make such accusations, but I forgive him. A face to face meeting with one’s largest customer (in this case, for Treasury securities) has a way of doing that to even the most truculent salesman”

Thanks for the laugh, a super way to start the day, take care.