This is just an update to a previous post that pointed to strong bearish divergence in the DXY,
Target was 83 - raised to 85 but possibly lower,
Competitive devaluation of the USD a side-effect of Fed over-reaction to a supply side disruption that lower interest rates simply cannot help. Rates now significantly negative in real terms, with a possibility of soon going negative in nominal terms as well. Demand for what is perceived to be riskier and riskier treasuries will be lower domestically and from overseas. At some point treasuries will become under subscribed and then we will be in a similar situation as inter-war German Weimar Republic.
Take the reduction in relative purchasing power or buy gold and silver.
Target was 83 - raised to 85 but possibly lower,
Competitive devaluation of the USD a side-effect of Fed over-reaction to a supply side disruption that lower interest rates simply cannot help. Rates now significantly negative in real terms, with a possibility of soon going negative in nominal terms as well. Demand for what is perceived to be riskier and riskier treasuries will be lower domestically and from overseas. At some point treasuries will become under subscribed and then we will be in a similar situation as inter-war German Weimar Republic.
Take the reduction in relative purchasing power or buy gold and silver.
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