by Egon Von Greyerz, Gold Switzerland:
We have dedicated numerous articles and interviews addressing the dangerous strength of the USD on the heels of a deliberately hawkish Fed hiking rates into what is clearly a recession, official or otherwise.
Explaining the Inexplicable: Rising Rates into a Recession?
On the surface, such central bank tightening in the face of a tanking economy and increasingly volatile risk asset markets makes little sense, as a strong USD and higher interest expense (i.e., interest rate policy) crushes just about every asset class in its wake, from an empirically broken bond market and grotesquely over-valued stock market to the artificially repressed precious metals space.