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The global dollar short squeeze [1], if left to unfold, will drive the dollar to highs that will paralyze the US and world economy. The Fed will combat this pro
by aazaa 7y ago
The global dollar short squeeze [1], if left to unfold, will drive the dollar to highs that will paralyze the US and world economy. The Fed will combat this problem through aggressive devaluation. This devaluation will take the form of moving privately-held assets onto its balance sheet through purchases.
Taken far enough, this program will leave the Fed without Treasuries to buy. To diversify the flow of assets onto the balance sheet, ever riskier assets will be purchased. Today it's junk bonds. Tomorrow it could be stocks.
[1] https://www.lynalden.com/global-dollar-short-squeeze/ https://www.lynalden.com/global-dollar-short-squeeze/
- jmcqk6 7y agoThat is an amazing link, thanks!
- acchow 7y agoThe fed has instituted infinite QE and we have a dollar short squeeze? Unlikely.
- dajohnson89 7y agoSurely there's some limiting factor preventing truly infinite QE.