from King World News
Global markets have seen some wild trading recently and gold has been in a strong consolidation, but here are some really big surprises.
September 22 (King World News) – Peter Boockvar: Today…there is a hearing before the House Financial Services Committee titled “Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response.” If there was any doubt, these two agencies are now hand and glove with the latter financing the profligacy of the former. I believe the key factor in the US dollar weakness this year and the lack of any notable flight to safety to it in the heart of the economic shutdown in March and April is because of the exploding budget deficits and debts. Here is a chart of the dollar index in white and budget deficit as a % of GDP in orange. The question thus for the dollar is whether the deficits shrink or the dollar eventually catches up.