Foreign investors veto Fed rescue (Fed project dollar meltdown: mission accomplished!)

[gulfcoastliberal]

Naturally you only find this info in the overseas media.

As feared, foreign bond holders have begun to exercise a collective vote of no confidence in the devaluation policies of the US government. The Federal Reserve faces a potential veto of its rescue measures.

Asian, Mid East and European investors stood aside at last week's auction of 10-year US Treasury notes. "It was a disaster," said Ray Attrill from 4castweb. "We may be close to the point where the uglier consequences of benign neglect towards the currency are revealed."

cut

The Chinese have quickened the pace of yuan appreciation to choke off 8.7pc inflation, slowing US bond purchases. Petrodollar funds, working through UK off-shore accounts, are clearly dumping dollars amid rumours that Gulf states - overheating wildly - are about to break their dollar pegs. But mostly likely, the twin crash in the dollar and US agency debt reflects a broad exodus by global wealth managers, afraid that America is spinning out of control. Sauve qui peut.

The bond debacle last week tallies with the crash in the dollar index to an all-time low of 71.58, down 14.6pc in a year. The greenback is nearing parity with the Swiss franc - shocking for those who remember when it was 4.375 francs in 1970. Against the euro it has hit $1.57, from $0.82 in 2000. Against the yen it has smashed through Y100. Spare a thought for Toyota. It loses $350m in revenues for every one yen move. That is an $8.75bn hit since June. Tokyo's Nikkei index is crumbling. Less understood, it is also causing a self-reinforcing spiral of credit shrinkage throughout the global system.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/17/ccview117.xml

[Deja Q]

1. You mean, they don't want us to devalue?

[Vincardog]

2. IT means that they do not want to go down the toilet with us.

[gateley]

3. K&R! -- nt

[nichomachus]

4. Easy remedy

Sit on a kitchen chair. Spread your legs. Put your head as far between your legs as you can. Kiss your ass goodbye.

[Demeter]

5. That's Shocking!

I'm going to cross post to stock market thread on monday, if you do't mind. Good catch!

[Celebration]

6. Welcome Stagflation! (or worse)! n/t

[gateley]

9. You sent me scurrying to look up the definition of 'stagflation'.

I think that pretty accurately sums it up.

I'm kinda thinking we're in for (or worse), though.

[stillcool]

7. There's no telling where the money went..

I need to re-read all of that BCCI stuff.

[gateley]

8. Ooops - already recommended.

I'm unspeakably bitter that there's more shit than we're even aware of that has been allowed to happen to our country.

I feel like I'm in the middle of a building, and it's all crashing down, collapsing, all around me. EVERYTHING is coming apart.

I remember initially liking what Perot and Ron Paul were putting forth in that I felt it was time to pull the rug out from under the status quo, and essentially rebuild from scratch. This admin is bringing that into reality. We're past fixing things. One finger in the dike and another leak bursts forth. We've run out of fingers.

[screembloodymurder]

10. This is a month old.

It's not current.