3 ms·
"Worth noting that this "dollar short squeeze" is the exact opposite of the most common conspiracy theory about the dollar:" No, it's not an "exact opposite".
by jerf 5y ago
"Worth noting that this "dollar short squeeze" is the exact opposite of the most common conspiracy theory about the dollar:"
No, it's not an "exact opposite". If one accepts the premise that players in the economy do not always yell out all their motivations and fears on the most public channels they can find, which when examined directly seems obvious but people seem to forget about it a few seconds later and resume acting as if the news is in fact full of everyone's private motivations and fears, then one can easily harmonize these two theories into one by wondering if the reason the Fed is printing money like crazy is that they fear horrifying deflation brought on by a dollar squeeze, so they're trying to get ahead of it. Certainly once it starts happening it's too late to react.
It's not my personal first guess as to the Fed's primary motivation, but neither is it an idea too crazy to take seriously, and I could easily accept it as a secondary motivation.
- AnimalMuppet 5y agoI think that was exactly the motivation in 2008. $4 trillion evaporated in the crash; the Fed created $4 trillion to prevent a collapse. More recently? I'm less clear on that. (Wow, 2008 was 13 years ago? And we haven't had catastrophe in that much time? That was... unexpected.)