Saturday, November 14, 2009
For the past 9 years now, students of history and common sense have been literally shouting from the rooftops that Gold was the place to be as the monetary tradewinds shifted back in 2000 and the fiat inflationary cycle began to go parabolic. While the multi-trillion dollar deficits might be a surprise to many, for those who understand how these things work, it is just a mundane repetition of history and yet another confirmation that man cannot alter the laws of economics or his own intrinsic predilection to ignore events past. (more)
In efforts to prop up the ailing U.S. dollar, experts estimate that some of the largest emerging economies may have spent as much as $150 billion on currency intervention over the past two months, according to data from Brown Brothers Harriman.
Though currency markets usually experience turnover of more than $3 trillion a day, traders pay close attention to what governments are doing and where they are likely to intervene.
Thailand, South Korea, Russia and the Philippines have been buying dollars in hopes of holding down the value of their currencies, as the dollar hovered near 15-month lows. (more)