A Weaker Dollar Is Just What the World Needs - btbirkett@gmail.com - Gmail

A Weaker Dollar Is Just What the World Needs - btbirkett@gmail.com - Gmail



...If the Fed wants the economy to grow, it plainly wants that savings rate to reduce and for money to find another home. That implies that it will try to keep real long-term yields as low as possible, and ideally negative. On Monday, 10-year real yields hit their lowest level since early May 2013, on the eve of the so-called taper tantrum, so the pressure to maintain low real yields continues. ... keeping real yields negative will exert ever greater downward pressure on nominal yields. That will be dollar-negative:



EU and UK

...If the EU and U.K. were to succumb to another loss of common sense in their Brexit trade negotiations, which must be completed by the end of this year, then the effect would be to take the pound and the euro out to the woodshed and shoot them. This would perversely strengthen the dollar.