Yellen & The Weakening Dollar
I have seen and heard a couple of commentaries about Yellen yesterday saying the US dollar was slowly declinning in usage as the global reserve currency. One commentator correctly pointed out this was the first time any US Treasury Secretary had ever made such a statement. While others have previously argued for a period of a weaker dollar when discussing fx and trade levels none have ever gone as far as Yellen. Why and why now? Because after months of trying to deny the inevitable, the Administration realizes everyone else both domestically and internationally knows there is real competition and the dollar’s role is going to continue to decline going forward. Yellen, as Biden’s stooge for handling this problem, is trying to control the narrative. By saying it is “slowly declinning” they try to take the least worse approach, that it is something that will take years to play out. It won’t. Gradually at first, then ALL at once. Probably, well before we have a new President.
Interesting
Just keep in mind that this too is a cycle. Its not over for the dollar yet. There are a lot of innings to be played before the end finally comes.