Another prediction fulfilled

Some readers will recollect my post of April 28, where I said, "the dollar must be at or near the bottom (watch for the US authorities to intervene as soon as equity and/ or bond prices start being affected by the slide of the dollar - which can't be very far away)".

Well, folks, the day has arrived!

I quote the FT summary:
Dollar surges as Bernanke speaks out
Jun 03 2008 19:05
The dollar surged while oil and gold tumbled after Ben Bernanke surprised markets by making clear the Federal Reserve does not want the US currency to weaken any further because of the risks to inflation
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http://link.ft.com/r/BLH300/DQMOE/JLF5/1CJSQ/RP2BZ/4O/t

However, this is still in the realm of talk. The Fed has to be judged by its actions, and it remains to be seen what it can and will do. I have no doubt that it will try its best to put a floor under the dollar. What remains to be seen is whether that exercise will work in the short-, medium- or long-term.

For reasons that I have written about elsewhere, the ability of central banks to influence such things has been gradually fading since the day when Soros made his billion by breaking the Bank of England in 1992. However, anyone who has humanity's interests at heart must hope that the Fed succeeds. Sphere: Related Content