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Gold/Mining/Energy : Big Dog's Boom Boom Room

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linhtu
To: robert b furman who wrote (194612)1/21/2016 10:38:23 AM
From: Elroy Jetson1 Recommendation   of 206178
 
QE as practiced by the Fed does nothing the lower the value of the US Dollar, as markets have noticed.

The Fed has merely made extremely low-risk assets unavailable to the market place, which supports the price of lesser quality assets. After QE stopped it took a while to see the decline in asset prices we're seeing now, but cash is the only alternative, so it remains to be seen how self-limiting this decline will be.

Only bilateral currency swaps reduce the value of the two currencies involved - and the Fed has been surprisingly inactive on this front, after being quite active in this area during the Asia Crisis.
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