I give up. It seems like the tune of this fall is going to be “all asset classes up, dollar down”, which really says nothing except that the dollar is toast. However – everyone keeps seeing the stock market go up and think things are great. From where I’m sitting, the US stock market is actually going DOWN, because the USD is depreciating so much. How can both the stock market and the government bonds be going up simultaneously? It doesn’t make sense.
It can only be explained by one thing : Delayed effects from 0-rate policy (zirp) and quantative easing. Could it be that the gasoline that stopped pouring in March still hasn’t done all it can to light up this fire? Or is the sad truth that the entire US Federal Reserve system is a fraud – and what they have on their balance sheet is just a fraction of what they have actually purchased? Who knows. I leave you with this graph for now (the Federal Reserve Watch section will be updated tomorrow)