"In essence, the Korean government would like to sell all the dollars they intend to sell before the dollar goes down. Ever had a stock go down before you could sell it? The Korean complaint is somewhat like blaming your losses on all the others who sold the stock you wanted to sell before you could get your own sell order in.
"Finally, while discussing the US dollar, we thought it interesting to note comments from Mr. Pierre Lassonde, the President of Newmont Mining. Mr. Lassonde has been steadfastly bearish of the US dollar for quite some long while and has been correct, so we give his views some larger credence than we might otherwise give that past performance. He believes strongly that the dollar has much further to fall. With private capital flows insufficient to fund the US' current account deficit, and now with the additional loss of foreign central banks as suggested by the statements much earlier this week by the S. Korean central bank, Mr. Lassonde speaks now of a literal run on the dollar.
"Following S. Korea's 'lead,' he expects countries like Malaysia, Thailand and Singapore 'to be the next defectors... [for] the appetite of foreign central banks for US dollars is starting to wane.' Interestingly, Mr. Lassonde said that Japan and China shall be the last countries to continue to support the dollar, for they have such enormous positions already established that they've no choice but to hold to their present course of action and try to defend their positions. If we had to bet, we'd bet that Malaysia will be next on the list to join S. Korea." "
Market Data 
Markets 
AI
