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Why the Dollar Has Rallied During Current Crisis

Has monetization of the National debt already taken place? Many posters here refer to it, but I haven't read anything about that elsewhere.

I think there is a step they are missing. The money isn't 'created' until the Fed buys US Treasury bonds with money it 'prints.'

So far, there has been plenty of buyers around the world buying US Treasury Bonds: So much so that the the dollar has rallied 20% and up against most other currencies because you need US$ to buy US Treasury Bonds.

If you think this can't continue on much longer, I agree. Somewhere down the line, the demand for US Treasurys will stop, yet the Treasury will have to keep issuing them to finance the huge deficits and bailouts. That leaves the FED to buy the bonds with newly printed money.

Talk about a bubble: Inflation goes up, the dollar falls, and the Foreigners who hold our Treasurys see their value heading South both due to the inflation and the exchange rate changes. As they try to head for the exits, the prices of this debt falls farther and interest rates rise farther.

When does all this start? Not until the Fed starts buying US Treasurys. So far they don't have to. Financial panic around the globe is just fueling the biggest bubble of all.