brucekrasting.com / By Bruce Krasting / October 23, 2012
The Hong Kong Monitory Authority (HKMA) was forced to intervene in the currency market again last night. This is the second time in a week that the upper end of the USDHKD peg has been tested by speculators.
There are two aspects to the attack on the HK$ that are worth noting:
1) This is a “celebrity trade”.
2) Ben Bernanke is responsible for the run on the currency.
Bill Ackman has made a very well publicized bet on the HK$. I find this interesting as it reminds me of George Soros, in 1992, when he took on the Bank of England and forced a devaluation of Sterling Vs. the Dollar.
Bernanke has his hands all over the run on the HKD. On October 14, he flew halfway around the world to deliver the message that specs should take on the HKMA.