Are foreigers fleeing the dollar? In the link below Bloomberg notes that foreign NEW BUYING of US assets is plunging.
So the popular and bogus argument that they are NOT SELLING might also be true.
THE ONLY PROBLEM IS: THAT LIKE A CRACK JUNKIE, IT'S TODAY'S "FIX' WE MUST WORRY ABOUT, NOT YESTERDAY'S!
As I've noted here before, the dollar debacle will occur at the margins first; then alas, THE DELUGE!
Thus, it has always been in the dismal science of bubbles.
Note too that just before the inflection point, there are often odd movements.
Huge unexplainable spikes and drops, as the markets "get thin," and smaller sales push prices around wildly. Also speculators attempt to "game" the markets.
Remember the MYSTERIOUS BIG BOND BUY UP last week; supposedly by foreign central banks?
Well, there's an old adage on The Street that if you're going to dump a big block of stocks or bonds into the market-- first you must do a big buy to juice the price.
Thus, it is hoped that the suckers will rush in, to "buy the dip," when you finally feed the first big block sale into the market.
Most of what's going on now is just hoping against hope for a miracle cure to the US deficits problem.
Or, maybe like Irwin Kellner suggests we should just let it happen.
And then take foreigners on SAFARI TOURS OF THE BIBLE BELT! So they can see our wild men and primative natives close up.
Maybe even let them sit on the porch and whittle a stick, or perhaps go to a hymn sing at the local church?
AMERICA HAS BECOME A BAFFLEMENT TO THE WORLD.
AND THAT INCLUDES THE US DOLLAR.
AND THE VAST OCEANS OF US BONDS ON WHICH THE GLOBAL ECONOMY NOW, ALAS, FLOATS.
http://www.bloomberg.com/news/markets/currencies.html
