Macro Man has long been more favourably disposed to the buck than many. His disavowal of the “dollar must go down forever” thesis is one of the reasons that he (unfortunately) didn’t delta hedge his powerball strip. However, even his patience has its limits. A few weeks ago, he noted that any aggressive gesture from the Fed to bail out turd-holders and reflate asset markets would force him to turn structurally bearish.
That has now come to pass, and in what Dennis Gartman might refer to as a “Watershed” moment, Macro Man has lost faith in George Washington. Simply put, if the Fed doesn’t give a crap about protecting the purchasing power of the dollar, why should anyone hold it?
Meanwhile, Jeff Matthews mocks the Fed. And Saudi Arabia declines to follow the Fed off the cliff.