Well, depending on how quickly the dollar rises amid all the world inflation going on right now I certainly think they could do some sort of currency intervention if it gets out of hand. Remember, not only is high inflation hitting foreign fiat, but a stronger dollar is a double whammy, adding to the pain and lessen their buying power. The Banksters are acutely aware of this. It kills the poor, as if they give a damn.
This is a big reason why other countries, even if they're friendly to the U.S., ,are getting tired of the dollar dominance over their fiat. Sure, it makes imports from countries like Japan cheaper to import, but what if the consumer isn't buying anything anyway? It won't really matter how cheap their imports are from cheap fiat conversion, we're in recession, and no one will be buying anything anyway.
I still believe the current rate hike cycle the Fed is now in will be VERY short lived. I'll be surprised if we see two more rate moves higher. They already have said they'll do two more .50 point moves. If they do that it would have rates at 2.25, IMO that's probably unsustainable, so when things begin to break they'll have to reverse course again and start dropping rates. Throw in the QT that's supposed to start in June and that tightens even more. IMO it tightens the noose around their necks.
Most of the Talking Heads I see on business tv say recession is still a year away, I don't believe that for a minute. All of this inflation is causing demand destruction and IMO we most likely see recession numbers coming before year end. That's another excuse for the Banksterss to cut rates again and start up the QE. We've seen demand destruction in the Walmart, Target, numbers this week already. It's here now.
We'll see, but if that happens IMO the PM's will move higher in a big way. I don't think rates over 2% will be sustainable for them.
News 
Market Data 
Discover 
