1/24/18
The dollar policy has changed from strong to stable. A strong dollar policy is used to keep imports low and exports costs higher. A weak dollar policy is to make exports cheap and imports expensive. A stable dollar policy is to keep the dollar's value stable.
What does stable mean? The dollar has dropped lately, so, do we want to stabilize it where it currently is? Or, do we want to increase its value first, or maybe, allow the dollar to decrease more before we put in efforts to manage its volatility? Managing the fall or rise is based on interest rate hikes (shrinking the supply of money) or printing (i.e. Q.E.).
That's the big unknown, I think. We don't know if the dollar is at the value the Treasury wants to keep it at, or if it needs to go up OR down first. Due to this unknown aspect, I imagine commodities (gold and silver particularly) and crypto's will go up tomorrow and the stock market will decline. My guess is they want a weaker dollar to improve exports (and have an excuse to cover the fact that the petrodollar isn't a requirement anymore for world governments to purchase oil, BRICS, etc.)
I believe that the UNCERTAINTY caused by this policy shift will cause entities to sell stocks (assuming a market high), and bonds (fearing a bubble), and people will move towards safety, and counter inflation, in droves. Although, I do recognize that long stocks may be the only yield people believe in and that the stock market can inflate with any long term printing, but again, long term printing isn't a stable dollar policy. If all central banks, do massive printing, then a stable dollar policy will be to print to zero, and that's good for gold but BAD for your health.
Learn to love one another.
https://www.biblegateway.com/passage/?search=1+Corinthians+13:4-8
