South Korean and Thai Finance Ministers Warn of Dollar Shock and Financial Meltdown

May 6 (EIRNS)--Further falls of the U.S. dollar due to the U.S. trade deficit could blow out the world financial system, South Korean Finance Minister Kwon O-kyu warned today at the ongoing annual meeting of the Asian Development Bank in Kyoto, Japan. Reuters quoted Kwon warning about trade and other imbalances in the economy: "Any abrupt and disorderly unwinding of these imbalances may send a tremendous shock through the global financial markets."

Thai Finance Minister Chalongphob Sussangkarn is also openly worried: "Should the financial markets lose confidence in the U.S. dollar, huge capital outflows from the U.S. could lead to a rapid depreciation of the U.S. dollar, and thus dramatic appreciation of other currencies," Chalongphob said in his speech.