Thursday, November 26, 2009
Stocks went into shock all around the world today except here because most of the markets were closed for Thanksgiving. I am just wondering how bad it will be here tomorrow. Dubai was a horror story that those who invested in it and promoted it overlooked. They over looked the slave labor they over looked basic principles when investing in it. Karma?
You have to wonder who knew in advance? With gold suppression being a public policy and the Fed no doubt having a bit of anxiety over China's concern about the losses they are taking by holding so much of our debt seems odd this news was not released until late Wednesday.
" China’s foreign-exchange reserves face a “triple whammy” as inflation, oversupply and the “inevitable” decline of the dollar threaten to erode the value of its holdings of U.S. Treasuries, said Yu Yongding, a former adviser to the Chinese central bank."
Late Thursday, the dollar had rebounded after suffering steep losses in Asia as concerns about a debt crisis in Dubai sent investors flocking to the greenback as a safe haven. When it did start to slide Thailand, Singapore and South Korea all appeared to sell their currencies Thursday according to the WSJ.
It also prompted concerns in Japan. Fujii, 77, said yesterday that the dollar’s weakness is spurring the yen’s advance. Today he said “a strong U.S. dollar is in their national interest. There is no change in our support for that.”
“There’s no doubt the market has moved too far in one direction,” Mr. Fujii said. “Moves right now are extreme, and it would be possible to take appropriate measures.”
Although he did not explicitly say that the government might intervene in the foreign exchange markets — by buying dollars for yen — such comments are often interpreted as “verbal intervention,” in which comments from top policy makers can swing market expectations and thus influence currency levels.
By mid-morning in Tokyo, the dollar gained somewhat, to 85.90 yen
China wants out but not by taking a huge hit still they are buying Gold. Investor's Buy Gold they know the Central Banks are on course to crash the World's Economy. Now we will have to see how it all plays out tomorrow.