The Plan To Kill The Dollar

My view:

The Obama administration is planning to kill the value of the dollar to boost exports.

While this may seem like a workable plan to the mad central planners and their central banking, Federal Reserve co-conspirators, it may be more difficult to kill the dollar then they anticipate.

The Federal Reserve can create money to its hearts content. 

But it depends on the banking system to deliver the goods by lending the money to credit worthy borrowers.

The bond market sets interest rates in the medium to long term range, and as the Fed tries to inflate, bond vigilantes may react by demanding increasing rates, and thereby raising interest rates as they have in Greece and Italy.

Since demand for borrowing has declined, and the bond market is becoming skeptical, that may prove a task more challenging than expected.

My medium term outlook remains deflationary.