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The Implications of Russia's "Red Monday"
by thenewgreen

    Make no mistake, this sell-off is a big problem — not just for Russia, or for the other over-levered emerging market currencies (TRY, INR, ZAR) that stand to be traumatized by a rising US dollar, but ultimately even for the US itself. As US capacity utilization returns to pre-2001 levels, and inflation gains momentum, dollar-pegged currencies around the world are about to come under increasing strain. I expect that Putin’s plans to chip away at the global reserve currency - the US Dollar - are about to shift into high gear.

    I’ll be watching this situation closely. In the meantime, some food for thought…it might be time for investors to give some serious thought to the major Russian names out there. Here is what I saw in the GDRs this morning...