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Honored Advisor

US Dollar over 100

I know we like to see a weak dollar for trade purposes, but after cutting interest rates to zero, the Dollar is still the prettiest girl in the Leeper colony.  Gold & silver are down on the bottom, feeding like Bullheads.  I think it has to do with our response to the Covid-19 emergency.

The 10yr note is bumping 1.40 highest in awhile 

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Senior Advisor

Re: US Dollar over 100

Sheesh.

I wrote about that somewhere below.

As in the GFC, the senior currency strengthens as liquidity tightens and overseas dollar funding stresses grow.

I'd sure prefer Paulson, Geithner, Bernanke here as opposed to the clown posse at Camp Runamok. But I imagine that they'll get around to creating unlimited currency swap lines as that team did.

Like the GFC- lots of dominoes teetering. European banking sector- which is deeply intertwined with out own- presents the first point of systemic risk.

Thanks Obama, Warren et al for putting in modest curbs on our banking sector which have kept it from loading near as much TNT under our banking system if the banksters  had their way. 

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Honored Advisor

Re: US Dollar over 100

For 35yrs I`ve been reading about "death of the Dollar, buy gold!" and to this day there are You Tube videos saying "next month the Renminbi over takes the Dollar...teach your children Mandarin!" and that video will be 5 yrs old.  The death of the Dollar has been greatly exaggerated.  

The United States, for all it`s flaws still is the safe haven of the world.  I think we can bailout all our hurt industries and there ain`t a damned thing the rest of the world can do about it, they`ll still buy US Greenbacks.

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Senior Advisor

Re: US Dollar over 100

Simply the reserve currency.

Which has pluses and minuses attached to it.

For what it is worth, if the MAGA autarchy crats were successful, we would lose that "exorbitant privilege" which as I say, isn't without some benefits. But it is like virginity- you don't get it back.

Also remember that the DX is half Euro- as I warned- watch Europe as a potential source of systemic contagion. Might in retorpspect turn out to have been a bad idea to be doing Reality TV episodes that included blowing out some of the supports of that relationship, but we'll see.

Also to be consodered at this moment as the Tea Party* does the two step to wild corporate socialism- one of the reasons why we can borrow any number of $Ts at very reasonable rates is that.

*biggest bunch of fraud phonies in history

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Senior Advisor

Re: US Dollar over 100

Reviewing  F  D  R   executive  order  ''''   6102  '''''  ,  on  April  5 ,  1933   -   may  shed  light  on  where  we  are  at  - - -

Blow  Hard ,  Boasting ,  in  the  last  few  weeks ,  has  chickens  coming  to roost  tsunami,  and  I  find  it  interesting  one  of  the  lead  players  of  this  D C  team  was  involved  with  K-Mart  &  Sears  leadership  during  their  headlines  -  which  can  be  reviewed  as  - ? 

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