Loading ...So far, it’s only talks of increasing rates, but no action from the Fed. I guess they are trying to bluff the dollar higher without actually having to increase the interest rate. I call it a poor poker face, because there is little hope for the dollar long term.
The problem is that too many countries hold too many dollars. At some point, they will want to spend their reserves to build up their country or stimulate the economy. When that happens, two things will have to happen. First, the price of all goods sold in dollar will go up because of the increasing in demand, reaching a level that it becomes too expensive for those with dollars to purchase it. Second, a increasing move to diversify the dollar as a reserve currency will also lead to a move to diversify commodities away from the dollar.
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