If dollars are in such high demand, why are they decreasing as a percentage of overall foreign currency reserves?
Two other observations:
In a slowing international business environment, fewer business transactions/purchases/sales are made, lowering demand for the dollar. Not saying there would not be some flight to safety as other currencies depreciate, but that would have to be somewhat offset by the drop in demand for dollars in international business transactions.
Countries are already seeking alternatives to the Petrodollar. The more oil that is traded outside the dollar, the fewer dollars that are required.
DB is the bank a lot of the commentators have been focusing on lately a source of the repo fluctuations and/or "Not QE" QE. So do you still think HSBC is causing some of the repo problem?