ForexSpirit

Treasury Secretary Henry Paulson today began a magic trick. Maybe you didn’t know or even realise that Paulson is a magician. I certainly didn’t.

Make sure you pull up a good seat, as this could be the best magic trick ever performed.

Every great magic trick consists of three acts.

Act One - The Pledge
The first act is called the Pledge. The magician shows you something ordinary, but of course it probably isn’t.

Today, in an interview on CNBC, Henry Paulson said that a strong US dollar is in the nation’s interest. The US dollar, that everyday object which is used by millions of Americans in their day to day lives without their even thinking about it.

Act Two - The Turn
The second act is called the Turn. The magician makes this ordinary something do something extraordinary.

Next week Paulson travels to China, along with Ben Bernanke, Chairman of the Federal Reserve, and six other top members of Bush’s economic team. This two day meeting is being dubbed a Strategic Economic Dialogue. The purpose of this trip is to get China to relax its currency policy. America would like to see the Chinese Rembini strength against the dollar. Of course, this means that the US dollar must weaken. One cannot happen without the other.

Now you’re looking for the secret. But you won’t find it.

Act Three - The Prestige
That’s why there is a third act called the Prestige. It’s the part with the twist and turns. Where lives hang in the balance. And you see something shocking that you’ve never seen before.

Just what has Treasury Secretary Henry Paulson in store for us?