by John Rubino
Dollar Collapse
It’s happening again. The Fed is threatening the financial markets with tighter money, and the markets are reacting like addicts being shoved through the front door of a rehab center. They’re not happy, and they have good reason – actually two good reasons – to be alarmed.
First, tighter monetary policy will blow up all the trades that depend on perfection going forward – which is to say pretty much all the trades currently in place in stocks, bonds, real estate, cryptos, you name it.
Second, the markets know this is all just a game, and can’t believe they’re being forced to play yet again. Going back to at least the 1990s, tight money has always led to crises of one type or another, and the Fed has always panicked (after a humiliating period of indecision) and reversed course, fixing the junkie a nice full syringe of monetary heroin.