Posted by Davy Bui on November 12th, 2007 in Market Commentary

Sorry about the absence the last few days…I’ve been feeling a bit under the weather.

The Asian markets (ex-China) are kicking off the week with continued selling. Bloomberg is carrying a story about foreign central banks trying to deal with the US dollar’s continuing slide with a variety of FX and capital controls. Who knows if any of this will actually work but it seems as if the situation is gaining momentum.

Sooner or later, authorities in the US will have to address this problem. The US economic situation pretty much guarantees that we will have to devalue our currency to settle our deficits. How much longer the rest of the world will tolerate bearing the burden for American profligacy is unknown but the fall-out from “rebalancing the global economy” will be immense.