CDS Market: Is the US Dollar Losing Its Safehaven Status?

In Global Markets: From “Minksy Moment” To The “Mises Moment” we pointed out that despite the massive “flight to safety” as seen by US Treasury bills which almost yielded to nothing during the recent riot in the global credit and equity markets, credit default swaps on US debt have reached record levels! 

From the Liam Halligan of Prosperity Capital published at the Telegraph “Financial crisis: Default by the US government is no longer unthinkable”

 

This is a very compelling picture which shows of the real emerging risks of a default by the US government on its snowballing debts as it is being compounded by the systemwide rescue of the financial sector.

 

Likewise it puts to question the foundations of the US Dollar as a “safehaven”.