The whip is snapping back on the dollar. Yesterday it was European currencies that were strong against it, today it is oil and precious metals. Asia has also favored tightening the trading band between precious metals and the dollar and the rope is going to break here at some point.
With the world's economist's chanting recovery, what do you think will happen? With the bond bubble bursting and Fraudclosuregate about to blow, the only option left for the wanker bankers is to invest their monies into corporate stock and bonds. How else will the corporate pigfaces move their worthless paper IOUs before a major run on the dollar occurs?
The Majors, those banks that have tens of billions of dollars stuffed down their throats and by which have fractional reserved multiples more, have so much cash what should they do with it? Perhaps they will continue to use cash to suppress and hide losses on their MBS holdings? Perhaps they will have the cash loaned to the big cap corporations and only they? hatever they are going to do, they should do it fast, because the currencie they all use is running out fast.
Could major Euro and other currencie weakness cause a hold on the dollar's release out to see? That has been the game thus far; it has always been a matter of time before a currencie gets washed away, and a matter of when before we find out which one. Come to think of it, maybe no swan is needed for a financial system failure to occur. The debt levels are so astronormous that the time has already come and past, but because Bernanke et al have subdued the market, we the collective have not noticed the currencie's faint breathing has stopped. This implies the collective has not paying attention to the cooperative. This would be correct. Obviously the attendant had become complacent of its chores-tending to the care of its Frannkenstein Bride; creating monie out of thin air makes little sense.
Yet making monie will not be stopped. The Bank of England has announced they will continue easing quantitatively, and keep their rates near zero. Shirakawa's Japan spends Yen on ETFs. Bernanke prints and spends $600 billion more dollars on MBS; and remember he is considering raising the cost. Maybe the Chinese raise rates this week, but only their overnight rate. As for now, everyone has their cake, plenty of it matter of fact. The morbid eating contest festers, and the contestants' bodies strain to keep gorging, but the body can only handle so much, and the system has eaten itself dead.