As an American, you enjoy the fruits of a dollar backed by the full faith and credit of the strongest military on earth. It is the reason why we are currency reserve. Make no mistake about it.
Ever since Europe decided to do QE and our Fed pursued a strong dollar policy, there have been consequences. Now that our Fed has decided to RAISE rates into the teeth of a cataclysmic decline, the situation has been exasperated.
For example, crude.
Or, the Mexican peso, at new lows–down 25% over the past year.
Are pesos too Spartan for you? How about our loyalist friends to the north and their ridiculous oil backed loonie, down a whopping 45% over the past two years. This is great news for you road trippers out there, wanting to see the vast expanse of wasteland called Canada.
Or Brazilian real, getting really crushed, down 53% v dollar over the past year.
Argentinas peso, off by 56% v the dollar the past year.
Let’s not forget Vlads ruble at new lows, down 30% v the dollar over the past 3 months.
All hail, King Dollars and its ruinous side effects. Do you see the dislocations? Everyone is freaking out over China’s 6% depreciation, while the deleterious deflationary affects of King Dollars stabs the third world, and Canada, in the face–sponsored by your insane Janet Yellen Fed.
If you enjoy the content at iBankCoin, please follow us on Twitter
Paul Singer thinks Yellen is quite sane to raise rates due to serious inflation that concerns him deeply. The article below is a little over a year old, but I am sure the inflation discussed there is still running rampant. Singer must be quite relieved now that the Fed is no longer ignoring this area of inflation that he is so concerned about.
https://www.washingtonpost.com/news/wonk/wp/2014/11/06/heres-the-latest-dumb-argument-from-a-billionaire-that-will-hurt-the-economy/
The fact that stocks look like they are going to go negative, where brokers have to pay people to accept them for free, or that China’s GDP is going negative, where their companies are going to produce goods and then pay people to accept them for free– these matters don’t concern people like Yellen or Singer.
Au Contraire mon frère. There’s a little island called Campobello and last summer and probably into this summer you can get a whole lobster and the cost in $US will astound. Although I have read that many a lobster is now being shipped to Japan or China.
The Honeymooners, one of the greatest shows ever.