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Carry Trade Volatility

The volume of prudential reserves held by each Euro-Dollar (foreign) bank presumably is dictated by “prudence” – not by any legal requirement administered by a monetary authority. All prudential reserve banking systems have heretofore “come a cropper”. Money creation by private profit institutions is not self-regulatory- the “unseen hand” simply does not function in this area. Invariably the systems created too much money, speculation became rampant, inflation distorted and destroyed economic relationships, confidence that the banks could meet their convertibility obligations eroded, “runs” on the banks caused mass banking failures, and entire economies were left in ruin.

Intense Inflation Pressure: Fed, Bank of England Have Their Hands Tied

“I don’t think you can interpret what’s happening with energy as a temporary shock.” -- William Poole. He is exactly right.

Economic output, interest rate differentials, etc. are merely short-term influences. The $7 trillion dollar current account deficit drives the exchange rate of the U.S. dollar. icandoitdon is exactly right.

Dollar's Fall Could Be Limited as Fed Signals Rate Pause

Say what? Who's going to stop it?

Dollar's Fall Could Be Limited as Fed Signals Rate Pause

The exchange value of the dollar, and it's accompanying trade deficit, fuels the superfluous and prudential E-dollar market...it is inevitable, the E-dollar market will collapse which will bring down dollar denominated assets, and the Federal Deficit & the U.S. dollar will be repudiated.