The Tipping Point of the Dollar: “A defining move by the Fed last week to buy billions in treasuries and Freddie and Fannie mortgage backed securities will change the world as we know it.
In my article entitled ‘Deflation Dragon Disaster’ written November 25 2008, I asked; “Will the unprecedented inflow of cash that is being injected into the system be enough to still the Deflation Dragon? At what point will the unyielding upward trend in the dollar be stopped in its tracks by the avalanche of FIAT sisters and brothers joining daily?”
With the Fed buying 300 billion in treasuries I believe that day of reckoning has come! Martin Weiss of Money and Markets adds up the tally of government funds committed so far as close to 13 trillion. He also reports a total of 57.3 trillion in credit default swaps. This inevitably will push the dollar down.”