That's all well and nice, but your graph doesn't take into account what currency is used to purchase oil and what currency is the backup note for the rest of the world.
Why do you think we can just print money like crazy and we don't end up like a shit hole South American country? Because our currency is what props everyone else up. If our currency crashed, the rest of the world's economy would follow. Other countries don't want that. So until we're no longer the backup bank note for the world, we're relatively shielded from a full scale crash.
the 10 year bond is US government debt priced in US dollars so it fully takes that into account. The FED is printing fiat dollars to purchase US government debt in order to support bond prices and suppress yields. That is directly dilutive to our currency and that is why the dollar index is now at 2018 lows of 90.35 and is trending lower. The dollar index will probably be down to 80 bucks by the end of the year because of the stimulus packages and additional fed purchases.
Every empire and every currency regime throughout history has eventually failed. Ours is failing right now. You can watch it live on investing.com every day.
That's all well and nice, but your graph doesn't take into account what currency is used to purchase oil and what currency is the backup note for the rest of the world.
Why do you think we can just print money like crazy and we don't end up like a shit hole South American country? Because our currency is what props everyone else up. If our currency crashed, the rest of the world's economy would follow. Other countries don't want that. So until we're no longer the backup bank note for the world, we're relatively shielded from a full scale crash.
Good or bad, that's the way it is.
the 10 year bond is US government debt priced in US dollars so it fully takes that into account. The FED is printing fiat dollars to purchase US government debt in order to support bond prices and suppress yields. That is directly dilutive to our currency and that is why the dollar index is now at 2018 lows of 90.35 and is trending lower. The dollar index will probably be down to 80 bucks by the end of the year because of the stimulus packages and additional fed purchases.
Every empire and every currency regime throughout history has eventually failed. Ours is failing right now. You can watch it live on investing.com every day.