Japan
I just have a short comment at the end of this post regarding the Japan situation. But first, the following is a short excerpt from Chris Laird. Click on the title for the full story.

Big problem for USD looming this Summer

But, PIMCO's Bill Gross stated that when the US has to end QE2, he wonders who is going to buy US bonds this Summer, after July.

Now, we might just get our first big USD scare and this is how it could happen:

First, suppose the US lets QE2 end. Then, if there is no QE3, the US treasury market might start to struggle. We might just see China and others let the USD rattle around in trouble to see if it is really as strong as it was up to now.

Supposedly the Japanese will jump in as needed, and might even singlehandedly support the USD from falling like they did in late 2004 and 2005.

But that is a problem for Japan this time because they are already being downgraded and have the highest debt in the developed world.

My comment: Now, you can add on top of that the earthquake, tsunami and nuclear issues and it's pretty sure that this avenue of escape for the dollar has been effectively closed! Almost seems like a higher power has it in for the dollar, doesn't it? Hummm.......