QE is a bluff (a magic trick).
And the bluff has worked beautifully.
No one cares about the man in the box (the truth)
They care about the guy on the state for the Prestige.
#EugeneFama just accused central banks of offering monetary "pornography", said they "don't do anything real", and averred inflation is "totally" out of their control.
Then why are #stocks up?!
Fama offers one answer: efficient markets. Snider, another: central bank seduction.
A shortage of #dollars and good #collateral are the biggest issue in the world. Who will replace the dollar? The #SDR? Perhaps. #Gold? Probably not, but it’ll be used as a medium of exchange and safe collateral. #Bitcoin? I love bitcoin, but come on guys 😉
China, owner of the biggest foreign exchange collection in human history, is reporting ‘no change’ in reserves. For months! In the middle of a monetary maelstrom?! That’s no accident, nor does it suggest calm serenity. Precisely the opposite.
https://t.co/wRPS3syYWU
I am sorry, prematurely calling the end of the global reserve currency is foolish. DXY down is not the whole story, and it's not something that will happen anytime soon. Maybe in decades ahead.