Equity Turmoil – Private Equity Placement – (Dollar Faces Selling Pressure)

PR Log (Press Release) – Oct 30, 2008 – “Private Equity Placement” are thought to believe that the US Treasury’s plan to buy up distressed mortgage-backed securities at a cost of some $700bn is likely to place increased pressure on the US dollar.

A source close to “Private Equity Placement” said that the plan effectively raises America’s national debt ceiling past $11 trillion just short of the country’s annual GDP.

“I think we will see the Euro and other currencies appreciate against the dollar over the next few weeks,” said the “Private Equity Placement” source.

The US dollar is the world’s reserve currency and most commodities are denominated using the greenback.  

“Private Equity Placement” are apparently attaching importance to the significant gain in oil and gold since the announcement emerged last week.

Analysts agree that the huge sum effectively raises the cost of the Federal Reserve and US Treasury interventions to well over $1 trillion dollars.