John Kerry Warns “Dollar Will Cease To Be Reserve Currency Of The World” If Iran Deal Rejected

 

Scaremongery… or maybe the whole point, as Obama’s former chief economist noted, is to lose reserve status. Take That China!!

As Jared Bernstein previously explained…

There are few truisms about the world economy, but for decades, one has been the role of the United States dollar as the world’s reserve currency. It’s a core principle of American economic policy. After all, who wouldn’t want their currency to be the one that foreign banks and governments want to hold in reserve?

But new research reveals that what was once a privilege is now a burden, undermining job growth, pumping up budget and trade deficits and inflating financial bubbles. To get the American economy on track, the government needs to drop its commitment to maintaining the dollar’s reserve-currency status. Continue reading

Yardeni: Markets all rigged, it is what it is

The stock market is “rigged,” but that’s not necessarily a bad thing, strategist Ed Yardeni said Thursday, a day after the latest dovish signal from the Federal Reserve.

“I love these central bankers, they’ve been very good to the stock market,” the president of Yardeni Research said in an interview on CNBC’s “Halftime Report.” Continue reading

US taper risks fresh crisis, says Deutsche Bank

Deutsche Bank says policymakers have become so used to “throwing liquidity” at structural problems that asset prices had become distorted and risked triggering a fresh crisis

Scaling back the Federal Reserve’s massive bond-buying programme risks throwing the global economy into disarray next year, Deutsche Bank has warned, with lenders unable to cope with higher borrowing costs, despite stronger economic growth. Continue reading