“Mann International”–Business International-(BRICs Eschew US Debt)

PRLog (Press Release) - Jun 12, 2009 -
“Mann International”: The first fractures in the US debt hegemony have manifested themselves after both Russia and Brazil – two of the fastest emerging economies – announced that they would be likely to buy fewer US Treasuries and more IMF-issued bonds in an effort to diversify their foreign currency reserves.

The news was greeted with quiet but palpable solemnity by analysts at “Mann International”, the Asian-based boutique brokerage.

The firm has expressed concern at the likelihood that traditional buyers of US Treasuries would lose their appetite for the bonds as the US embarked on an unprecedented expansion of its fiscal deficit in order to pay for bailouts and stimulus packages.

“Mann International” believes that the US is engaged in stealth debasement of its currency as a means to inflate its way out of debt. A source close to the firm pointed to recent announcements from China that it had more than doubled its holdings of gold. He also cited requests from the Chinese government that the US provide reassurance that its US dollar investments were safe.

“Mann International” believes that emerging economies may begin to buy more gold rather than rely on sovereign debt since gold has no counterparty risk and has long been seen as a store of value.