We live in a crazy world, particularly the financial markets, stock prices keep crashing, Fed (US) keeps pumping in billions and billions of dollars (QE), and common sense suggests the more QE its underlying currency, in this case, USD, should lose value. But the weird thing is, the USD index value still keeps going up. Some argued, because US dollar is the reserve currency and many transactions use USD as unit of count, so, demand for USD stays high. But I think it’s a BIG ANOMALY. And when the world economy is driven by such anomaly everything would break loose and run into amok.
The world needs
- free markets
- a basket of reserve currencies based on economic merits including strength and size
- enforceable world economic body (unlike WTO because WTO at this point is not of much use)
What do you think?