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Yen-Sanity. Dollar Delirium.
In "Hell Or High Water", I mused that despite record highs on various equity benchmarks, there are plenty of signs that things are somewhat off-kilter.
If "off-kilter" isn't the right adjective, it would be fair to describe the current environment as “delicate” or “tenuous”.
One particularly vexing issue is the dollar, which continues to climb, despite expectations for Fed easing. The greenback is sitting at the highest levels since 2017. DXY is near 100, a psychologically important le
So the big question is when is China going to devalue in response to the dollar rise? How can China maintain a 7ish conversion ratio to the dollar, with all that is going on? Floating the currency would send it way down. And any major devaluation event might break its ‘stage 1’ (bullsh*t) trade promises to the US. Could we be nearing an extinction level even with the global economy as a result?
Time to buy more US treasuries.
H-Man, if you feel your knees are knocking from what is going on in the globe, you run to where your money is safe. On the menu you have the Dollar or Gold or maybe a mix. Absent these two havens, the rest of the menu stinks .