Thursday, October 15, 2009

banks put 63 percent of their new cash into euros and yen


Noticed this at the NY Post,

"

Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago. 'Bernanke's other choice is to keep rates at zero, print even more money and sell more debt, but we'll see triple-digit inflation that could collapse the economy as we know it.'

"

The above article generalizes the immediate past, with no empirical evidence of likelihood for continued actions for the immediate future. And, the coming destruction of USD backed credit instruments still makes inflation/deflation immediate future uncertain.

0 Reflections: