Posts Tagged ‘dollar’

More Whining About The Dollar

Another country has been heard from on the subject of dollar dominance. India has joined Russia and China in pressing for reforms to the world’s financial system. From Bloomberg: Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars. [...]

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A Couple Bearish Views For The Dollar

Two grim assessments for the future of the dollar. The first is from James Pethokoukis at Reuters (if you aren’t reading this guy’s posts then start to do so): Great, great stuff from the great Andy Busch of BMO Capital Markets: “According to the US Treasury, the two largest holders of U.S. debt are China with [...]

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The Russians Want Fewer Dollars – So They Say

You know it’s something of a slow news day when pundits start getting their undies in a bunch about the Russians diversifying out of dollars. Really, they’ve been beating this dead horse for several weeks and it’s getting tiresome. Here is the meat of the story from Reuters: Russia on Wednesday pledged to cut the [...]

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Another European Bank Problem

I guess this is one of those good news/bad news stories. The Telegraph reported yesterday that European banks have built up a $2 trillion funding gap. The banks were basically borrowing in their local currencies to finance the acquisition of dollar assets. They have been able to cover their positions by buying dollars short term [...]

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Buy American: The Ghost Haunting Davos

A couple of days ago I posted my thoughts on the “Buy American” provisions of the fiscal stimulus bill. A fair amount has been written since but none better than Ambrose Evans-Pritchard’s dispatch today from Davos. If you have any interest at all in this subject then it’s a must read. There are two central [...]

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How Risky Is Quantitative Easing?

When the Fed announced its move to ZIRP as well as its intention to move aggressively to quantitative easing, I called it the Great Experiment. At that time I said it made me uneasy and the more I think about it and the more I read, the more queasy I become. Though the move was [...]

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Is Setser Too Sanguine?

Brad Setser’s, Follow The Money, did its usual good job of putting the current Fed stance in perspective today. He notes that the Fed is has become the middle man for large scale financial transactions: Banks with spare cash (more deposits than loans) used to lend to banks that were short of cash (more loans than deposits). [...]

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