Dollar Scarcity

I don't often link to hedge fund types, but Hugh Hendry has a good explanation (at about 2:20) of what I believe will be a significant economic story going into 2010. A worldwide shortage of dollars because of deleveraging, and developing nations being squeezed out of the capital market by massive US government bond offerings.



link to chart

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Update : Some of what was done at the G20 was about alleviating the severity of this dollar crunch.