Watching BBC America right now... ...Iceland, South Korea, Argentina, Indonesia, Portugal, Lithuania, Ukraine, Hungary, South Africa, Pakistan... ...All are at risk of defaulting of their debt obligations. They're asking for IMF help.
First they wanted to replace the USD, now they are getting crushed by it... this country always wins when you least expect it!
Seems those unwashed straggly haired cultists who have been sitting on tops of hills for the last few decades saying 'end of world nigh' have finally been vindicated.
Add Russia to that list... Sydney, October 24: Analysts say that the deepening crisis in Eastern Europe is weighing on EUR/JPY sentiment, as it is increasing investor risk aversion and is seen as negatively impacting Europe and European banks. The UK Telegraph reports that foreign investors are pulling out of Russia and the debt markets are starting to price in a serious risk of sovereign default. Spreads on credit default swaps reached 1,123, higher than Iceland"s debt before it sought a rescue from the International Monetary Fund. S&P issued a downgrade alert on Russian bonds yesterday, warning that a series of state rescue packages could start to erode the credit-worthiness of the state. S&P said Russia"s budget was likely to slip into deficit in 2009 as result of the dramatic slide in oil and metal prices this autumn, and cautioned that "the ongoing concentration of the financial system in state hands" had become a political risk. Hans Redeker at BNP said in the article that the crisis in Eastern Europe could get out of control and do serious damage to Western Europe and predicted the EUR/USD could fall to parity next year.
Actually I think we will have a global money printing orgy. As the Governments takes over ever increasing swathes of their financial sector and industry. A multi trillion dollar hole in the balance sheets is only going to be fillable by multitrillions of printed currency with all the attendant issues.
actually that is why US$ will be phased out as a world currency in the near future because of US problems other countries fall and USA can just print more money that is why Europe wants new Brenton Woods entire world can not depend on one country
To bad the IMF is mainly funded with you tax dollars. It only time before we have a total collapse. I love how we use Enron accounting and brag about it.