Zombie banks, apocaliptic outcomes, and the Fed's balance
sheet full of trash. Once the Fed trash can is full, it
will most likely spill over in a form of trash monetization, which
will be very bad news for price stability, or, should I say,
price instability -g- The continuation of the dollar index demise
rests on the policies of the global central banks, ECB in
particular for USDX. There will
be economic weakness and rampant inflation. Who will choose to
address what? Will the dollar be the only currency that goes
to zero, or all of them march there together, hand in hand?
It seems to me, the Aussies and the ECB are more
inflation-hawkish than others, at least for the time being,
but the Oz runs a huge current account deficit, while Europe
doesn't. Also, all countries have inflation lies, not to
overstate it, by any means, but to varying degrees -g-
What the Fed wants is to devalue the dollar against the Asians
and oil producing countries to reduce the current account
deficit, but these folks have not been
very cooperative over the years, it seems. |
