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Notes to myself, possibly of interest to others.
-- Bill Northlich

Friday, May 14, 2010

"Money printing will lead to a Dollar collapse" -Not-

Many doom-and-gloom pamphleteers have made a career out of promoting apocalyptic propaganda about how Fed “money printing” will soon lead to a collapse of the US Dollar.

This prediction is nothing but a fantasy which has virtually no evidence to support it.

First, by most relevant measures, the US money supply currently is either growing modestly or is actually contracting. Second, the sharp appreciation of the US Dollar against virtually all currencies around the world and the decline of US sovereign bond yields represent a dramatic vote of confidence in the US Dollar and US Dollar denominated assets. Finally, global interbank dollar funding rates prove that there's currently a shortage of US Dollars in the world relative to current levels of global demand for US Dollars.

...many of the propagandists of dollar doom and gloom have a pre-set agenda -- whether it's extreme politics, hawking gold, or whatever.
---James Kostohryz, Minyanville, 5/14. (Paid Subscription Rqd)

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