Dollar hits “fresh 15-year-lows” against the Yen:

TOKYO – The dollar fell to a fresh 15-year-low against the yen in Tokyo on Thursday amid growing speculation that the U.S. Federal Reserve will ease monetary policy next month.

The U.S. currency was quoted at 81.07 yen briefly in late Thursday trading in Tokyo and was trading around 81.10 yen around 7:30 p.m. (1030 GMT; 6:30 a.m. EST).

Dollar-selling accelerated in Asia following Singapore’s surprise move to widen the trading band of the Singapore dollar. The island nation’s central bank, known as the Monetary Authority of Singapore, said Thursday that it will continue with a “modest and gradual” appreciation of the Singapore dollar.

The dollar’s continuing decline against the yen — nearing a post-World War II low of 79.75 yen set in 1995 — led the Bank of Japan to act last month to stem the yen’s rise by buying dollars — it’s first intervention in the currency market in six years.

[…]

The dollar has been under intense pressure as investors bet that the Fed will enact a bond-buying program in early November. Buying bonds would drive interest rates and yields even lower, and tends to encourage dollar-selling.

Shocking. Then there’s this:

LONDON – European and U.S. stock markets  mostly fell Thursday as investors awaited a speech from the Federal Reserve chairman that is expected to give more clarity on what the central bank is planning to do to prop up the ailing U.S. economy.

However, the prospect of more dollars floating around the system continued to pile the pressure on the currency itself.

[…]

Figures showing the U.S. labor market  remains in the doldrums just added weight to what investors have already fully priced in — that the Fed is planning another monetary stimulus and possibly the creation of an inflation target.

All eyes will be on Fed chairman Ben Bernanke Friday when he delivers a speech on monetary policy, more or less at the same time as monthly inflation figures are set to show price pressures in the U.S. economy remain subdued.

Analysts said it’s no longer a question of if but how and how much money the Fed will pump into the U.S. economy.

[…]

“Dollar holders’ anxiety over the potential implications of upcoming Fed policy actions has understandably ratcheted up another notch,” Hardman added.

In other words, the dollar is a sucker’s bet and everyone is going to be dumping them as the Fed pursues it’s hyper-inflationary policies.

Which of course means all that funding the federal government promising you suckers on the left is off the table as the world stops funding us:

On already-tough week for Treasury auctions turned dramatically worse Thursday when investors skipped out on a 30-year bond sale.

The $13 billion of reopened long bonds was a mess: the yield of 3.852 was well above the when-issued level; a bid-to-cover ratio, or the measure of how much was bid compared to each dollar auctioned, came in at 2.49, which was the worst since February and well below the average of 2.70; and foreign interest, as measured through indirect bidding, was a paltry 32 percent.

The poor results added to earlier losses for the bond market, which fell even though the stock market also was off in afternoon trading.

The 30-year was half a point lower in price to yield 3.85 percent, while the benchmark 10-year note shed 10/32 to yield 2.46 percent.

Treasury yields have fallen in recent weeks as traders piled into the market on bets that the Federal Reserve would begin another Treasurys purchase program to help stimulate the economy and create healthy inflation.

That must be the same “healthy inflation” that is driving food commodity prices up and caused a 10% rise in grocery bills in the last two months. Lay in your larder if you haven’t and do not shy away from “emergency” food supplies because the climbing cost of food is an emergency. Bulk purchases of freeze dried foods or grain buckets will serve you better than gold when food shortages really hit America.