Competitive Currency Debasement 101 Class Is In Session

 

Janet Yellen is Joe Biden's Treasury Secretary nominee. She claims to support "market forces" as the driver for the US dollar. What does that really mean in a practical sense?

Swiss Cheese Statements on the US Dollar

Biden's Treasury Secretary, Janet Yellen, is also a prior Fed Chair. I noted her Swiss Cheese Statements on the US Dollar.

The United States doesn’t seek a weaker currency to gain competitive advantage. We should oppose attempts by other countries to do so.

Yellen can make whatever swiss cheese statements she wants but how would a central bank act if it wanted to sink the dollar?

Steps to Weaken a Currency

  1. Cut interest rates
  2. Engage in massive QE balance sheet expansion
  3. Pledge to keep rates low indefinitely
  4. Pledge to ignore inflation and let it run hot to make up for alleged undershooting
  5. Encouraging more fiscal stimulus

The Jerome Powell Fed is five for five on doing the very things that would cause the dollar to sink and Yellen supports all of them.

Other counties are doing many of the same things and if they weren't the dollar would be dropping faster. 

Yellen is Yellin' For More Free Stuff

Please note Yellen is Yellin' For More Free Stuff

Ms. Yellen acknowledged the government’s mounting debt load, which stands at $21.6 trillion—or roughly 100% of a year’s economic output. But she urged lawmakers to put those concerns aside for now. Interest rates are at historic lows and expected to remain there for some time, making borrowing more affordable, she said.

Actually the National Debt is about $28 trillion, not $21.6 as claimed by Yellen.

They Are All Manipulators

The US, EU, Bank of Japan, China, and Swiss National Bank (SNB) are all major currency manipulators.  They just use different tactics.

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