Ask Unca Ben …
“U S Federal Reserve chairman Ben Bernanke’s helicopter has been sighted for the first time in emerging markets, raining dollars in South Korea, Mexico, Brazil and Singapore. The currency swap lines of $30 billion (Rs1.5 trillion) arranged by the Fed for each of these markets led to a drop in dollar borrowing costs in Asia on Thursday, strengthened Asian currencies (the Korean won was up 14% against the dollar) and, together with the cut in the fed funds rate, led to a polevault in stocks in the region.
The global dollar shortage has played havoc with emerging market currencies, which have been plummeting.”
Don’t Ask … Demand
It is more like US responsibility …
The US has been evading transparency by not revealing M3 figures (on dubious grounds), printing money 24x7x365 and creating toxic assets. Now when the muck has hit the fan, they are acting coy.
China was right that the US is now looking after its own – and not bothered about the problems the US has created for other countries. Like this news article shows, India is unlikely to get seriously affected – which is possibly creating complacency in India about what needs to be done.
The 2ndlook model for a Third currency Bloc is ready. Join in to review, participate, critique and develop the First Cut. While the need for a new global reserve currency has been evident, there is very little in the public sphere. The speed of events has clearly caught the BRICS and Third World napping – and unprepared. But, not 2ndlook – who, from the very beginning, proposed that the world should stop clinging to the Dollar-Euro skirts.