I have just learned that the money printed by FED is directly related to the investment banks contrary to what is accepted as a phenomenon. Regardless of what the reality is, people / economist review the actions by FED like the operations done by other central banks. Consequently, the markets react to the news coming from them accordingly.

When it comes to the other countries, we see a different story. In the developing countries, the dollarization is exponentially increasing since people lose their faith in the managers of their fiat currency. Since the USD is the reserve currency that is relied on by millions of people in hard times, the existing balance gets harder to sustain. In the vicious cycle of the other countries, they are getting loans in USD, their currency loses its purchasing power against USD, they pay for the loan in USD (more fiat is used for it) and the cycle happens for years. This is what already happens in developing countries (I witness things as a person experiencing) and the waves is likely to hit the developed ones in the macro perspective.

This is what I see/experience and these are my personal ideas.

How about you mate? What do you think/expect?

Posted Using LeoFinance ^Beta