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That's one factor, I'd argue it is caused by the $12 trillon is usd denominated debt, and due to the economic situation, no cashflow to pay it. But the Fed has
by sfj 7y ago
That's one factor, I'd argue it is caused by the $12 trillon is usd denominated debt, and due to the economic situation, no cashflow to pay it. But the Fed has been ramping up printing presses, creating a tug of war. How long before the latter overtakes the former?
The Fed just expanded repo to $1 trillion per day: https://m.theepochtimes.com/fed-expands-repo-to-1-trillion-per-day-to-avert-liquidity-crunch_3280317.html https://m.theepochtimes.com/fed-expands-repo-to-1-trillion-p...
- Der_Einzige 7y agoYou're totally right about repo and massive amounts of loans, but the impact of other countries trying to get USD outweighs this - at least in the short term. Checkout currency trading right now - the USD is surging compared to every other world currency. That's because demand for USD is extremely high world wide.