US is talking the talk but will US Treasury and Fed walk the walk?
Minyanville - NEWS & VIEWS-Paulson's Dollar Bluff: "Today, the only way the U.S. can intervene in the currency markets is if foreign central banks intervene for them and support the dollar by 'printing up' their own currency and buying dollars (or through swaps allowing the U.S. to do so). Either way, foreign central banks have to be willing to accept more of the inflationary burden for them to do this, since their currency would weaken against the dollar. However, inflation would remain the same and therefore worsen from the foreign central bank's standpoint due to their own currency's depreciation vs. the dollar."
Norton's comments: I am still betting on a dollar decline unless the US Treasury decides to intervene temporarily by buying US Dollars to take them off the market.
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