Asia Central Banks Attempt to Protect Dollar

This article in the Wall Street Journal online should be considered a milestone preceding a currency crisis.

In the next 30 days we will get a good look at what the death curve will look like of the U$D.

Will the dollar continue on a gradual and managed landing as the The Fed plans; or will the markets overpower government intervention with an inertia that cannot be controlled?

The Bank of Thailand confirmed it intervened; saying the baht's strength since early this month isn't justified by fundamentals.
"The baht has appreciated a little too rapidly compared with our fundamentals. ... The central bank has tried to take care of the baht so that it doesn't get too strong," Assistant Governor Suchada Kirakul told reporters.

In the other countries, the central banks didn't make public statements.

Traders in Seoul said they suspected the Bank of Korea, which has intervened heavily in recent weeks to curb won strength, bought up to US$1 billion at around 1,167 won.

Bank Indonesia was suspected of buying up to $350 million around 9,370-9,380 rupiah via state banks to slow the rupiah's rise, according to traders in Jakarta.

In Manila, the Philippines' central bank bought around $100 million at 46.46 pesos to 46.50 pesos, according to traders. The dollar was last at 46.40 pesos.

Taiwan's central bank was spotted buying U.S. dollars early in the session after the local currency settled at its highest level against the U.S. unit in more than a year, traders said. The U.S. dollar was recently trading at 32.133 New Taiwan dollars, lower than Wednesday's close of NT$32.180, but off its opening low of NT$32.098. Traders said if the U.S. dollar drops below NT$32.100 during the session, NT$32.000 remains a pretty strong support level in the near term.

The Hong Kong Monetary Authority said it sold 3.88 billion Hong Kong dollars in the foreign-exchange market to defend the Hong Kong dollar's peg to the U.S. dollar. Thursday's intervention, the second this week, was triggered by the U.S. currency hitting HK$7.7500, the strong side of the Hong Kong dollar's trading band. The U.S. dollar was trading at HK$7.7501. Under Hong Kong's currency board system, the Hong Kong dollar is pegged at 7.80 to the U.S. dollar, but is allowed to trade between HK$7.75 and HK$7.85.

This is all bad news for Americans and our standard of living. The only thing that Americans can really do is prepare for the inevitable. The US government will not return to sanity in time to prevent the demise of our currency. I would expect the criminals in DC to do just the opposite and add fuel to the fire.

All they know is spend, tax, print!!!
Prepare and prey.