In a 2011 interview, hedge fund principle, Kyle Bass spoke of "when [he] asked a senior member of the administration last week, 'how are we going to grow exports if we wont allow nominal wage deflation?'"
The response was: "We're just going to kill the dollar."
"Oh, okay, more you mean," Bass retorted.
The Federal Reserve Bank hasn't disappointed.
"After such a notable correction in the past 9 months, the precious metal once again becomes a very attractive global asset if monetary policy in the largest economy of the world spins out of control," remarks Jones Trading.
Even if policy is not perceived as "out of control," surely it snaps of the 100bp tightening Fed-Chairman Ben Strong pulled in early 1928, only to back-pedal afterward, admitting his error, and reversing course with a new rule, by September of that year:
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