T.A.C.O. Is at play here as Cook at the FED is under threat of being fired. There are legalities that need to see if a sitting president is overstepping their power here. The FED is suppose to be independent, but that is at risk and is being threatened.
If the FED looses independence you can expect that investors will perceive a lot more risk, and this would devalue not only the U.S. Dollar, but any dollar asset. Pretty much the hit to the dollar would also take down the U.S. Stock Market and the U.S. Bond Market.
Pretty easy to see (transparent) how this loss of credibility would effect profoundly anything priced in dollars. Anyways, I think this could be the big event that takes down a house of cards.
Pretty much “Trumped” up charges to have a reason to fire at this point that lack credibility.
Wall Street is in the mindset that this is a TA-CO trade and is ignoring the risks I mentioned above if the FED looses credibility, and anything valued in Dollars suddenly hits a steep drop.
“Inflation is the future,” I say.
Will the IMF bail out the U.S. like some third world country? Perhaps not. Self inflicted wound.
Do you believe our economy can implode? I do…
Cal
