G7 Preparing Statement To Support Dollar

08-07-2011 • ZeroHedge.com

Just out from Bloomberg: Finance ministers and central bankers are preparing a statement to release before the open of Asian markets, the Nikkei newspaper reported, without citing anyone. Japan may intervene in currency market if dollar falls. G-7 finance ministers, central bankers expected to express confidence in dollar, pledge liquidity. U.S. to explain fiscal rebuilding efforts." [so no more sniping at S&P and actually doing its job eh?] "Japan to express intention to maintain Treasury holdings. G-7 expected to show support for EU fiscal efforts." And while the G7 is about to realize that when faced with a $100 trillion (equities plus debt) market onslaught its printing powers are next to laughable, Dow Jones reports that the "ECB is weighing Italian, Spanish bond buying on a massive scale." Two take homes: i) the Fed has just lost its competitive advantage of doing idiotic things on a massive scale as the world wake up to tits trickery (unless of course the Fed resumes said thing on a massiver scale, which it will), and ii) tomorrow is the day when the infinite force of central planning meets the immovable object of capital markets. We will find out who blinks first in a few hours.

1 Comments in Response to G7 Preparing Statement To Support Dollar

Comment by David Jackson

Entered on: 8/9/2011 12:58:37 PM

The "fed" has lost nothing. That they even exist is testimony to their power and control. (They should and could be relegated to the scrap heap of history with the stroke of a pen, if those who have sworn to defend the Constitution would only do so.

As for the G-7, they ought to "back the dollar", since it's the international piggy bank. Most of those thugs owe their very existence to the dollar.

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