by Summary:
Investor perception about monetary policy has been pushing the dollar higher, but the fundamentals that actually drive exchange rates are bearish for USD.
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Mike Norman considers the following as important:
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Investor perception about monetary policy has been pushing the dollar higher, but the fundamentals that actually drive exchange rates are bearish for USD.
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
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| Investor perception about monetary policy has been pushing the dollar higher, but the fundamentals that actually drive exchange rates are bearish for USD. |
Been crazy to watch for sure. Who knows what's next? Anything could come lol
Does American military reveal fusion technology and the dollar shoots to the moon?
Up till max 14 sep then down till first of october
I'm a Dollar bull for sure, inflation down Dollar up.
Jeff Snider explains strong dollar as a result of a dollar shortage in the eurodollar system. He is also betting for deflation.
Regarding QE being a stimulative activity ===> outside of the monetary machinery that you cover so clearly, is there a case to make that QE is permitting Congress (and other country's political leaders) to have the political will and therefore room to deficit spend because they can point to low rates and therefore low debt service. For example, Yellen recently used this narrative to explain why 29,000,000,000,000 is serviceable and manageable. QE = low rates = political cover to deficit spend = economically stimulative. Regarding the USD, it's an RV issue? Looking at Euro and JPY, the Dollar is strong simply because these countries are trying to weaken their currencies through a self-immolating economic strategy of negative rates?
@bb. "Is there a case to make that QE is permitting Congress to have the political will…to deficit spend because they can point to low rates and therefore low debt service?" Yes, If you're a neoliberal who thinks the US needs to borrow dollars in order to spend but MMT knows that is false and even if interest rates were 20% like in the early 80s the US can still spend and service the debt so long as the resources are available to purchase.
Treasury rates blindly follow fed funds rate projections outside short term speculation thus QE is not needed for treasury rate suppression. I think QE has to do with improving liquidity in the banking system and boost MBS collateral value in bank balance sheets. QE should be tapered but it would probably cause a meltdown.
dollar up i sees deflation hopefully as lumber crashes more i can build my chicken coops for the depression
Is owning gold & silver the same as shorting the dollar?