By MICHAEL GRAY
Fed Chief Ben Bernanke and Treasury boss Tim Geithner tried their best this week to buoy the greenback, but to no avail.
As the dollar lost 2 percent on the Dollar Index this week, despite Geithner’s CNBC roadshow, which did nothing to stop the slide. The index on Friday touched 76.457, the lowest level since Sept. 25, 2008, which was after the BofA/ Merrill Lynch shotgun marriage was announced.
The only event to stem the slide was the erroneous CNN report that US Coast Guardsmen had fired on a vessel in the Potomac, when in fact the Coast Guard was conducting a drill.
The dollar cratering last week comes on news from China that the communist party leaders have told the state-owned companies that they no long have to abide by derivative contracts taken out as a hedge on commodities.
This action, while largely ignored by media, has huge repercussions in the pits of Chicago and New York. The Chinese government is telling its comrades that the contracts are null-and-void if fraud is behind the deal.
Monday marks the year anniversary of my story which broke the news of how Lehman’s bankruptcy cause a seizure in the credit markets and almost brought the markets to its knees. The Wall Street Journal and New York Times were days away from getting a handle on the story.
Boy, am I winded from taking that victory lap. I need a drink.