Tag: usd

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24/7 Money Printing at the Fed? Misconceptions and Consequences.

The US Federal Reserve balance sheet is expanding at an unprecedented pace.

If investors thought 2008-2018 was extraordinary enough due to a decade of near-zero Fed fund / interest rates, the last 3 months can only be described as absolutely absurd.

This chart shows the Fed’s balance sheet in trillions of USD:

In <6 months, the Fed expanded the balance sheet by ~$3 trillion (from $4 trillion to $7 trillion).… Read the rest “24/7 Money Printing at the Fed? Misconceptions and Consequences.”

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In Dollar We Trust (and Why China Would Prefer Otherwise)

Regardless of who you speak to, most people likely understand (or at least accept) that the US Dollar (USD) is the world’s most important currency. Most people also likely understand (or accept) that the USD is the world’s most important reserve currency.

Despite how important the dollar is to the US and the world, there is surprisingly very little mainstream consensus about where that power comes from and whether that power can be sustained.… Read the rest “In Dollar We Trust (and Why China Would Prefer Otherwise)”