Goldman Asks: What’s So Special About The Dollar, Anyway?
This is the dollar’s “key statistical property”.
This is the dollar’s “key statistical property”.
“Although the Republicans are supposedly the party of fiscal conservatism, we all know that sort of talk is only for when they are not in power.”
“Are central bank balance sheets really shrinking at all?”
“The main risk to our pro-cyclical and non-US tilt is a spiraling escalation of the trade war, political tail risks in Washington, and failure of the Fed to recognize those potential developments.”
Back to the “melt-up”.
“Hand over your trade policy and I’ll release global markets”…
“A lower-for-longer strategy is attractive for several reasons. “
“And in the case of the US, low rates seem to assume unending demand for US Treasuries given the US dollar’s role as the global reserve currency.”
After a pivotal week, where to?
Somehow, this will resolve itself.
Around the world in 2,100 words.
For what it’s worth…
“There are many risks out there.”
“Do nothing, and undo nothing”.
Long live the king?
Hint: not retail investors.
A full docket.
“Hence, like squeezing on a balloon”…
It’s not over.
“No. We disagree.”
Expect a reprieve, but beware 2019.
U.S. politics and trade are likely to dominate the headlines this week.
“Protectionism could set off a succession of negative consequences. If all the elements were to combine, we could face a perfect storm.”
Games of chicken, prisoner’s dilemmas and the suspension of disbelief.
“‘Yes, yes, yes, we’ve already heard this from Mick.”
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