Asian tigers roar back at US Dollar
by Project Mayhem
Overnight, we have learned that multiple Asian central banks intervened to prevent rapid appreciation of their own currencies against the US Dollar. Could we be witnessing the beginning of a currency crisis, or is this simply more water under the bridge?
Igor Panarin, the cagey Russian , who predicts dollar fail in November 2009
There has been minimal talk in the mainstream media regarding the latest problems in the US Dollar. Earlier this week, there was the Robert Fisk article, which was accompanied by strong denials by various governments around the world, despite the rapid price appreciation of gold over a matter of days. My latest discussions with my sources indicate gold may actually be in stealth backwardation, which would help explain the intensity of the moves, even in the absense of formal statistical backwardation. Regardless, the question remains, what is going on? Who are we to believe? What is happening in the global financial system?
Hungry for exports!
The UN repeated their calls once again this week for a new world currency to replace the US Dollar. Sources close to the G20 indicate that the IMF was annointed global central bank during this meeting, with the IMF SDR as the mechanism by which a global currency will be introduced. Overnight , we witnessed intervention by multiple Asian Tigers to prevent appreciation of their own currencies against the US Dollar. Could this be the beginning of larger currency problems? Or is this simply a head-fake prior to a collapse in US equities, where hot money is chased back into bonds and cash, causing rapid appreciation of the maligned global reserve currency?
It is impossible to tell. No one can predict the future -- unless you control it. However, we do know plans may have been on the table for some time to remove the pillars of support from under the United States. The writing is on the wall. Foreign creditors grow weary of the stewardship by an incredibly corrupt group of white collar criminals which occupy tall office buildings on Wall St. Russian FSB strategist Igor Panarin has claimed foreign revolt against the United States would occur as soon as November 2009. Panarin claimed this would start with serious problems in the US Dollar and insolvent banking system. Jim Sinclair has claimed a currency event is coming by the end of October 2009. The web bots, although notoriously inaccurate, have indicated similar events on the horizon centered around October 25th 2009.
Overnight, we witnessed intervention by various Asian central banks to suppress their own currencies against the Dollar. The banks of South Korea, Taiwan, the Philippines and Thailand all intervened to prevent appreciation of their currencies. The Bank of Korea bought $1billion. The Bank of Indonesia bought $350 million. The Phillipines' central bank bought $100 million. The Hong Kong monetary authority sold $3.88 billion Hong Kong Dollars to support its dollar-peg. The Yen is at 88.24, but there was no intervention by the BOJ, at least none that we could confirm.
These are serious moves. Why is this not front page news? It is difficult to tell whether these are simply more dramatic fluctations on the world markets, or the start of a new phase in the crisis. What will be imperative is to pay close attention to the actions of global central banks in the days ahead. Currency is key. The next four weeks should be quite interesting indeed.