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MacroVoices #345 Daniel Lacalle: The Situation in Europe is Worse Than You Think

Macro Voices

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Taking a Bet on a Weakening of the US Dollar

I don't see any way in which the euro zone or Japan as an economy are likely to revert the trend that has started. The problem of taking a bet against the US dollar is that you're taking a massive bet against central banks that are actually doing everything that they can to continue to debase their currency. To bet on a weakening of the US dollar you need to bet more than on the Fed pivotingYou need to bet on the increase in dollar based debt that has happened in the last years plus the increase in exposure to US dollar trading commodities etc and that is huge think about this you're not going to get it back completely.

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