by John Rubino
Dollar Collapse
Sometimes the best thing about a blog post is the comments it generates. That’s frequently true on DollarCollapse, especially when friend-of-the-site Bruce C is doing the commenting. Here, in the first of what will hopefully become a series (under Bruce’s byline), are a couple of representative examples:
“What If The Rest Of The World Tightens And The U.S. Doesn’t?” — December 19
Bruce C: Well, considering that the question really is about how the financial markets would respond it’s hard to predict given how flaky and confused everyone seems to be. However, if I had to guess, I’d say the response would be exactly what the Fed wants: Money would move out of Treasuries and into the debt “assets” in the higher interest rate countries. That would then tend to lower US bond demand/prices – and thus raise their rates – without the Fed having to do it. All the while QE could continue.