Monday, January 18, 2016

US Dollar is not a safe haven but people think it is so it can go higher

Janet Yellen may have the guts to do it but she is not going to get it right. She does not know what she is doing. She got it wrong when she was there for 10 years or so when she was down there in the Federal Reserve board. 

Anything she does is probably going to make it worse. If she cuts back on interest rates again in panic, that is going to be bad for the world. If she raises the interest rates, which is what she should be doing, that will make the dollar go higher. It is a fact that there is panic in the air and when there is panic people look for a safe investment, not in the Euro or the Japanese Yen, the only thing they know to do it the US Dollar. And it is going to go too high and maybe even into a bubble because there is nothing else for people to do.