via NYT
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Source:
Dollar Shift: Chinese Pockets Filled as Americans’ Emptied
MARK LANDLER
NYT, December 26, 2008
http://www.nytimes.com/2008/12/26/world/asia/26addiction.html
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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December 26th, 2008 at 2:30 pm
The graphs are just illustrations of the result what was discussed in the article forming the basis of the “Blame China?” post.
Greenspan should be remembered for his ability to create a longer lasting debt bubble than John Law. Both bubbles were based on the “value” of notes issued by their respective banks. I just wonder at the consequences when people realize that Greenspan’s notes are as worthless as Law’s.
December 27th, 2008 at 7:38 am
Some things have changed. At least the people had the sense to realize the fraud and run Law out of the country. Greenspan, on the other hand, gets a plush job and speaking engagements.