hey there has been rumourings out of the obama finance team that they want to try to ban short sale of the Us doller. i dont know how they can do this. the reason is to head off an obvious play to short the doller, b/c of the fed printing and flushing the system with cash policy. there trying to prevent guys like soros who broke the UK pound, with the same situation in the states.
You can't "ban short sales of the US dollar" When you buy products, services, etc in the US you usually pay in US Dollars, you are shorting the US dollar for the product, services etc. The store is at the other end of the transaction and is going long the USD. Makes no difference if the product being bought is a currency. forex-forex -------------- Trading Guru
Yes you can do it by restricting the flow of capital with capital controls that only allow for the buying or selling of physical goods. It is very unlikely to happen or even be considered.
The could do exchange controls as a similar version of what OP is suggesting, but at this point they WANT the dollar to go down. I dont think the Fed is slightly worried about the inflationary consequences of a dollar crash given that its one of their POLICIES to drive down the dollar in deflationary times as bernanke has said that himself