Articles by ecothrust at Technorati Headline Animator

Friday, March 20, 2009

Printing Dollars could hurt its price

Despite Hillary Clinton's priority trip to Asia , China & Japan have reportedly threatened to stop investing in US Securities. As a last bid resort to shore up the economy it will be the Fed now buying treasury bonds. The Trillion Dollar budget to print more money will no doubt ease money supply but will in all probability be driving down the Dollar. China which had been accumulating Dollars since it hit its last low point of March 2008 already has called for creation of a new international currency to replace the Dollar. However with the failed SDR experiment of the sixties that is most unlikely.The confidence of the international investor in the US Dollar was nonetheless shaken by Fed's aggressive initiative . Its price could take a hit in the coming months For those who were Dollar bulls watch out.

No comments:

Post a Comment