Pages

Friday, October 10, 2008

US Dollar is at the Tipping Point.


Look at that Hockey Stick below the chart. Trees are not grow to the sky forever. US Dollar is close to important resistance at 0.82. Should the "flight to safety" stop US dollar will drop like a rock. Blanket guarantee for interbank market should they impose it over the weekend in USA means that all potential losses will be absorbed by the Treasury balance sheet. It is right thing to do now, but at a cost: this cost is devaluation of US Dollar and downgrade of USA Treasuries rating from AAA.

No comments:

Post a Comment