| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Crunch Time?
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden on 02/07/2016 – 15:25
Submitted by Paul Bordsky via Macro-Allocation.com,
It seems monetary policy is exhausted and the next exogenous lever to pull would be political fiscal initiatives. If/when they fail to stimulate demand, there would be only one avenue left – currency devaluation. If/when confidence in the mightiest currency wanes, we would expect the US dollar to be devalued too – not against other fiat currencies, but against a relatively scarce Fed asset.
Seriously Squirrely
On February 3, New York Fed President Bill Dudley noted financial conditions are considerably tighter than when the Fed hiked rates in December, and, though its members are not yet ready to draw conclusions about the policy path, the FOMC will surely consider such tightening financial conditions in its future deliberations. He further noted that a weakening of the global economy and additional dollar strength could have significant consequences for the U.S. economy. Bingo.
It seems we have been on the right path by arguing the Fed has taken control of dollar policy. Less clear is that the Fed acknowledges an inevitable global de-leveraging, and in such an environment a strong dollar would attract global wealth and capital to the US, which in turn would fund bank deposits and capital markets. (It is unlikely the Fed would acknowledge such a policy so economically hostile to its trade partners.)
The post Crunch Time? appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/07/crunch-time-2/
