HLS – I think you are too cynical towards FED. I think FED will be lot more responsible than the government. One thing they don’t have to contend with is elections & votes. That makes things a little more rational. Secondly, they have to try very hard not to seriously upset confidence in $. Else, they will compound the problem by significant devaluation. The ice is very thin here. One major wrong move and the reserve currency status can easily collapse. The European and Asian banks have taken major hits and won’t shed a tear if $ goes the way of British Pound.
