HOT: Dollar Intervention!!!
08/10/2009 § Leave a comment
Overnight, the U.S. dollar continued to fall against most Asian currencies, prompting a wave of foreign-exchange intervention by central banks in South Korea, Taiwan, the Philippines and Thailand.
Things are really bad when the Philippines is propping up the dollar. The Philippines!
These declines are really hard to stop, near impossible. Is this the the start of the tsunami wall of dollars that could hit markets?
Remember a panic out of the dollar is unlike any other currency panic we have seen. As the defacto international reserve currency (though obviously slipping from that status), every country, every international corporation is holding them–all possible points of panic.
A full fledged world panic out of the dollar will mean huge U.S. inflation, soaring gold and the financial system rocked to the core.
How will the U. S. be able to finance its debt under these conditions. This could be the big one.