Commentary
Why are market participants scared of a strong dollar? Because for years there was a massive carry trade against the U.S. dollar predicated on a bet that constantly printing currency and cutting rates would never create inflation.
The world got used to betting on one thing—massive money supply growth—and the opposite—weak inflation. Cheap money became expensive, as I explained in my book “Escape from The Central Bank Trap.”
The U.S. dollar isn’t strong. The loss of purchasing power of the greenback is the largest of the past three decades. The U.S. dollar is only “strong” in relative terms against other currencies that are collapsing in a global currency debasement that comes after years of monetary excess….