For decades the U.S. Fed, ECB and BOJ (Bank of Japan) have worked in tandem to dictate monetary policy but today, in extreme rare circumstances, we are seeing a decoupling of policies. In layman terms, U.S. Fed is raising interest rates while the European Central Bank (ECB) and BOJ continue to lower interest rates and this divergence is causing havoc in the emerging markets and leading to a heightened dollar value (note that I didn't say dollar appreciation).
The emerging market (EM) currencies are getting whacked and so are some of the companies based in EMs. The institutions in the EMs and ultra high net worth have means to "dollarize" and either buy institutional grade real estate or just million dollar condos in Manhattan but the masses will need a portal to "dollarize" - which is BITCOIN - the universal store of value. This will take a few months for the hurt to set in.
I have my theory on why the Fed is paving its' own path and how it relates to Trump's belief system which I will elaborate in future posts.
I will post on how NYC is becoming a ghost city, somewhat like London.
