Very important point 👇🏻made here.
We can have a rising USD due to rising rates and de dollarisation.
Basically rest of world can say GTH to Fed and have their own monetary policy course if they trade with each other in non USD ways. At least partly - 1
We can have a rising USD due to rising rates and de dollarisation.
Basically rest of world can say GTH to Fed and have their own monetary policy course if they trade with each other in non USD ways. At least partly - 1
In short, Fed can either have tight monetary policy or USD as the reserve currency. Trying both same time will, not work beyond a point IMO. - 2
I personally suspect Fed is better off with a Dollarised world and unlimited QE. Nothing works in finance like pushing sovereign debt to future generations. The game can go on quite some time as most powerful stakeholders in this world will be okay with rising asset prices -3
In long run this won't work and may break. But creating silos in globalised world of financial flows is also complex. Infact whole thing is getting complex. And more the complexity in the system, more one appreciates a simple instrument like Aurum or Argentum !!! - End.
