Source: Cobden Centre
by Alasdair Macleod
“The dollar’s problems should be laid at the door of the wishful thinkers who think the state knows better than free markets. It is that which has led to currency imbalances. Central banks attempting to manage economic outcomes by manipulating interest rates and ‘stimulating’ economic activity have acted in defiance of Say’s law, which defines the relationship between production and consumption, and the true role of a medium of exchange. By dismissing this fundamental truth, the US authorities have made a rod for their own backs. Their determination to replace gold as the highest form of money with the fiat dollar has led to extraordinary levels of dollar accumulation about to be unleashed onto unsuspecting markets. A break below 100.50 on the dollar’s trade weighted index will probably be the signal. It currently stands at 101.50.” (05/18/23)
https://www.cobdencentre.org/2023/05/the-dynamics-driving-the-dollar-down/