And therein lies the problem. Quantitative ease has proven to be relatively ineffective in reviving economies in the US, UK, Japan or Europe. If that’s the best we got, we could be well and truly screwed if the global economy maintains its present trajectory.
The dollar? It’s falling, because another Fed members says the Fed stands ready to do more, even if more isn’t likely to do a damn bit of good.
The Fed is presently sporting a $3 trln balance sheet and the dollar sits at a two-year high. You mean to tell me if they do another half-trillion in QE, it’s going to change the direction of the dollar? I think not.
We are in a deleveraging world and the Fed is powerless to change that reality, no mater how hard it tries. And when the world derleverages, the dollar rallies. #fact
