JasonC

Monday FX View: The Dollar Stands Still

Um, the dollar just went vertical, up 1% against the Euro in less than an hour, and not one news organization, website, or commentator has a story covering it.

Is anyone watching the actual markets, or does everyone just make things up to fit their political world-view or trading book and just hope it turns out to be true?

Rate Cuts? What About Inflation?

The article writer is stark raving mad. This is deflation on an epic scale. Demand for money is not a constant, and right now it is infinity. That is why all future claims are being discounted to zero value, and only something liquid tomorrow has any. The time horizon of the entire civilization has shrunk to a matter of weeks. And this fool is worried about inflation! If authorities pull out all the stops, the price level might only fall by half. If they don't, try 10-fold.