US$ rally continues
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 the Fed to act. The $ is also at a 2 1/2 week high vs the euro helped out by political infighting in the Ukraine that is holding up the 4th tranche of an IMF loan. Comments from PBOChina Gov gave no indication that they plan to alter the band of their peg to the US$ anytime soon. With 6 wks left in the yr and investors holding their nose, $ action alone will exaggerate equity moves.
De.li.cious
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November 20th, 2009 at 9:18 am
President Fiscal Irresponsibility and his merry band of moron’s are going to try to ram another multi trillion dollar unsound bread and circus show through this weekend.
I’m not holding my breath.
November 20th, 2009 at 2:33 pm
After 8 years of George W. Bush, “President Fiscal Irresponsibility” and “merry band of morons” just doens’t sound right referring to anyone else.
November 20th, 2009 at 3:34 pm
Oh I’m not partisan.
I’ll go all the way back to FDR.
Two wars and a tax cut because Daddy Bush lost to Clinton for the read my lips and then I better reign in the debt.
Nope, we have a bread and circus empire being sold as a Democracy/Republic and being raped and pillaged. My point was: With morons saying we have to be financially responsible and then passing trillion dollar irresponsible bills I’m not holding my breath for any dollar “rally”.
We are as insolvent as Enron, the dollar is a dead dollar walking, every time it takes a breath some folks get all hot and bothered, me, I think it is it’s last, or one of it’s last.
November 20th, 2009 at 10:13 pm
@ davossherman
Well put. And the USD rally is really only against; other currencies. Race to the bottom….
November 22nd, 2009 at 8:24 pm
Yeah, we’re insolvent.
Well, except for that $14 trillion GDP every year.
But other than that, yeah we’re insolvent.
If the dollar is dead why do we have a lower debt/GDP compared to EUR and JPY ?
If the dollar is dead why has our M3 only increased 1% since TARP began ?
@Pat: Only against other currencies ?
If the dollar is dead why are soybean futures, orange juice futures, lumber futures, wheat futures, sugar futures, coffee futures, and cotton futures at the same price as 30 years ago ?