Citi Predicts 20% Decapitation in Dollar, Post Vaccine

Let’s not pretend everything is okay. Citi issued a note yesterday, brushed under the rug because Citi generally sucks. However, seeing the rise in Bitcoin, now almost $18k, coupled with RISING RATES during a time of collapse — one has to seriously think if it’s at all possible. A 20% drop in the dollar, post vaccine.

The widespread distribution of vaccines to combat the coronavirus pandemic and ongoing monetary easing could cause the U.S. dollar =USD to weaken as much as 20% next year, Citibank said on Monday.

“When viable, widely distributed vaccines hit the market, we believe that this will catalyze the next leg lower in the structural USD downtrend we expect,” the U.S. bank said in a research note.

The idea is massive denigration of the dollar due to wanton stimulus, which in turn will cause stocks, especially foreign stocks, to trade up. Back in 2008 we had a situation like this, the crushing of the dollar and precipitous rise of commodities, including food, just prior to the housing collapse. The environment was surreal — and everyone was placing bets on multi-nationals, oil, farms, potash, dry bulk shippers etc. The inflation trade worked double in Australia, where commodity related stocks there had the double win of rising currency and commodities. Aussie stocks and real estate were smoking hot. But then all of that ended and the kangaroo fucked himself.

The idea of the $100 tomato was something I often fantasized about. All sorts of regulations are scheduled to be enacted soon, such as NO MORE NATTY in San Fran and no more gas powered cars in Cali by 2035. All of this seems suicidal — because it is! But during mass suicide events, the coffin makers and the gravestone makers bank coin, so I’ll be keeping my eye on all of this stuff for the rest of you — as you slovenly sloth thru the markets, fat and slow, hoping for more Federal Reserve bucks to bail you out. Well guess what, Bozo Trump is trying to squeeze in one last fucker into the Fed before he heads out to build his big beautiful library. Her name is Judy Shelton and she wants to get back onto the gold standard.