Fed 600 Billion
The Fed is back to printing money. To the tune of 600 Billion at the rate of 75 Billion a month.
What’s that? You thought that stimulus required a vote? Me too.
If it’s not obvious to anyone else, the US Economy is being held together with tape. We don’t even have a clue what is going on in it, it’s just become more and more pumped with money.
The sad thing is, because the government is unpredictable, this money is doing nothing to help anything. The only thing it’s doing is helping cover up for the misgivings of the banks in the United States. They are buying up all the junk debt they can and pushing the crisis forward to be dealt with on another day.
This makes me less than optimistic about the future of the US Dollar. I’ll admit that the trade is awfully one sided at the moment, but I don’t see any reasons for that to change. (If you do, feel free to comment, I’d love to hear it.)
The only thing this says to me as a trader is that the Fed is out of ideas, and that they don’t care if they debase the US Dollar and end up engaged in currency wars.
Holding US Dollars has just become and extremely risky proposition. What do you have to say about this?