The USD has risen sharply against almost every major currency.
- The USDX is up 23% in the last eight months. That is the fastest pace it has risen since 1981.
Good news? NO.
- $74 trillion in derivatives is now at risk because of this. It was 2008 the last time the Dollar did this, and what followed was the worst US financial crisis since the Great Depression.
- For the ROW (rest of world) this is extremely deflationary. There is going to be a great deal of pain.
What to do? If your assets are in fiat-denominated paper, well........
- Start drinking heavily....not to celebrate, but quite the opposite.
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