As details emerge regarding the government's proposed invention to assume toxic banking corporation debt in addition to backstop the mortgage in addition to coin markets, the estimates of the cost are quite high. How does such a massive supposition of debt impact perceptions of the dollar in addition to the creditworthiness of the U.S.? How volition it impact regime borrowing going frontwards (and thereby involvement rates)? How volition it impact inflation? How volition it compete for investment dollars alongside corporate borrowing? How volition all of these impact economical increment inwards the U.S.? It's interesting to run across that, alongside stocks soaring today, gilt is moving higher (top chart); the euro is moving higher vis a vis the USA dollar (middle chart); in addition to 10-year Treasury rates are soaring. Time to hedge USA dollar exposure?
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