In explaining the current economic crisis, Alan Greenspan said this today:

"The consequent surge in global demand for US subprime securities by banks, hedge and pension funds, supported by unrealistically positive rating designations, by credit agencies, was in my judgement the core of the problem."

It struck me that he could have easily substituted 'US dollars' for 'subprime securities' in this statement. Doing so gives us a clear picture of where we may at last be headed. The final denouement.

In other words, everyone is rushing to the 'safety' of the dollar, cash, even selling good company stock to do so, and NO ONE is questioning the positive rating of that US dollar. Considering that the treasuries can only be supported by the sale of more treasuries - i.e. dependent upon a continual refinancing of debt - what credit agency is it that is giving such a positive rating to the dollar?

BK