Friday, February 15, 2013 1:58:08 PM
Hi there Elder! Long time no type.
It looks like we'll be on opposite sides of the dollar trade as I sell the USD to you.
I've been short the dollar continually over the past 3 years, using it as the funding currency for my carry income.
My outlook on the dollar is negative as the U.S. continues to ignore its debt problem. There will be no political solution in my view, so the only option (aside from default) is to monetize the debt. They're essentially already doing that.
A hypothetical causal chain from the past couple of years:
Bernanke's buying >>> more dollars >>> world commodity prices rise >>> food costs more in many poor parts of the world >>> people are up in arms >>> "Arab Spring"
It looks like we'll be on opposite sides of the dollar trade as I sell the USD to you.
I've been short the dollar continually over the past 3 years, using it as the funding currency for my carry income. My outlook on the dollar is negative as the U.S. continues to ignore its debt problem. There will be no political solution in my view, so the only option (aside from default) is to monetize the debt. They're essentially already doing that.
A hypothetical causal chain from the past couple of years:
Bernanke's buying >>> more dollars >>> world commodity prices rise >>> food costs more in many poor parts of the world >>> people are up in arms >>> "Arab Spring"
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