When central bankers start talking like FX strategists
Analysts at Goldman Sachs have an interesting take on the latest FOMC communication. More and more, they reference the dollar and the positive/negative feedback loops from a weak/strong currency.
Zerohedge does a good job of breaking it down.
We're at the point where the ability to use traditional monetary policy is virtually exhausted so the only way a central banker can help his/her economy is to jawbone the currency lower or stay more dovish than necessary.
The final piece of this puzzle would be if global central bankers all set rates at zero and let the FX market help rebalance growth. That won't happen so we're stuck with an inefficient world where capital sloshes around a globalized economy.
