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by throw63788
1818 days ago
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》International tolerance of our dollar and bonds I see opposite, dollar may loose its status as sole reserve currency. It may take couple of years, but US is no longer perceived as bastion of stability. Countries are diversifying and dumping dollar assets. For example Russia recently: Russia's $186 Billion Sovereign Wealth Fund Dumps All Dollar Assets |
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Stop reading Zerohedge and come back to reality.
Its good to diversify, its also true that the Federal Reserve is the biggest market whale in the universe. The gravitational pull towards the dollar is unavoidable because there isnt enough liquidity for any other form of value that exists.
The signal to watch for is US Treasury yields being unsupportable by the Fed’s purchasing program due to a greater market consensus of selling. As this does not happen and the macroeconomic trend is for US Treasury yields to also flirt with negative rates, like the rest of the planet’s major economic unions, it shows the opposite of your view.