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Can we have a strong dollar while FED is printing massive quantities?


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strong dollar relative to what?  ...other currencies, commodities, gold,...?  What is the benchmark for your question?

 

wabuffo

 

No idea. I guess my strong dollar would be the same with Yellen's strong dollar?

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^i think the Treasury is in charge of the strong/weak dollar policy although 'discussions' can happen with the Fed. The Real Trade Weighted U.S. Dollar Index: Broad, Goods and Services is usually used as a benchmark. In the end (or at the margin), it's mostly a matter of confidence.

Recently, i went through a KKR presentation and they had the following:

 

charts-42.png

 

They seem to expect a decline in relative value of the dollar (based on the fiscal deficit) but there are so many factors.

They also showed this:

 

charts-5.png

 

How can you know you've gone too far if you haven't gone too far?

Disclosure: i'm presently working with the assumption that the USD will remain, relatively, a strong currency.

TWUDSindex.png.07ae5c5c3f9dbfdd74f0ba3178e4ef6c.png

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I can’t answer the question but I do think the strong dollar is the cause of a lot of imbalances around the world.

 

I think it’s artificially keeping commodity prices low which might result in supply shortages.

 

It’s making US manufacturing less competitive which is increasing income inequality.

 

It’s forcing interest rates negative in other “safe haven” currencies.

 

 

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