The Financial Times reported UN team warns of hard landing for dollar where the article white washes what the report really says, the United States is at risk for a dollar collapse in 2009:
This was nicely worded to disclose that the U.S. dollar is poised for a major fall.
The euro may be nearing an ``explosive breakout,'' reaching record levels against the U.S. dollar, according to a Citigroup Global Markets Inc. research note.
The Labor Department said today in Washington that so- called core prices increased 0.4 percent from March, bringing the year-on-year gain to 3 percent, the biggest since December 1991
Speaking of funky statistics, this doesn't include fuel and food.
The euro rose to $1.5302 in afternoon European trading before dropping back slightly to $1.5278. The new low broke through the previous record set Monday at $1.5275
What are the chances we have a monetary collapse like Thailand, Russia is now what I am wondering?
Gulf-based analysts point out that most of the currencies of the GCC are undervalued against the dollar, based on their current-account balances, inflation and costs of goods and services. The UAE dirham was undervalued by 10-15 per cent and the Saudi riyal by 25-30 per cent, according to a report by Deutsche Bank AG.
"The dollar peg prevents nominal appreciation. Since the dollar itself has been falling, the result is rising domestic inflation. Some Gulf economies now have inflation rates of around 10 per cent," analysts said. Markets piled pressure on Gulf currencies last year as speculation mounted that more GCC countries would follow Kuwait and abandon links to the weak dollar partly to curb imported inflation.
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