Sunday, January 07, 2007

Another Dollar Pegger Bites the Dust

Hong Kong is now talking about abandoning the dollar in favor of a basket of currencies, "to better control inflation" according to Jake Lee at Bloomberg.

money basket
[Thanks to dragon-gate.com for the image.]

At this point, the recent statistics that favor the Fed's choosing to raise Fed rates in 2007 is the only thing holding up the dollar on the international marketplace.

Will they do it? Stay tuned. The temperature changes around this issue about every five minutes, just like the weather in New England.

[Note: Is it Pegger or Peggor? Probably not in the dictionary yet.]

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