more panic on the home front.
i am not sure this much hand-wringing is justified. america is not going to collapse overnight. it's going to, like in the saying about old soldiers, just fade away slowly.
---------- Forwarded message ----------
The Dollar's Full-System Meltdown
By Mike Whitney
10/30/06 " Information Clearing House" -- -- The U.S. Dollar is kaput. Confidence in the currency is eroding by the day.
A report in The Sydney Morning Herald stated, "Australia's Treasurer Peter Costello has called on East Asia's central bankers to 'telegraph' their intentions to diversify out of American investments and ensure an 'orderly adjustment'….Central banks in China, Japan, Taiwan, South Korea, and Hong Kong have channeled immense foreign reserves into American government bonds, helping to prop up the US dollar and hold down interest rates,' said Costello, but 'the strategy has changed.'"
Indeed, the strategy has changed. The world has come to its senses and is moving away from the green slip of paper that is currently mired in $8.3 trillion of debt.
The central banks now want to reduce their USD reserves while trying to do as little damage to their own economies as possible. That'll be difficult. If a sell-off ensues, it will start a stampede for the exits.
There's little hope of an "orderly adjustment" as Costello opines; that's just false optimism. When the greenback begins listing; things will turn helter-skelter quickly.