up up we go we're not back to strong
dollar of the 1990s at the end of the
day overcomes all why is it our
exorbitant privilege I think sorbets and
privilege in the sense the u.s. actually
can get away with policies that no other
country can I mean think about this when
the Fed was doing QE for five years
other countries money basically brought
on a crisis the US on either hand was
able to watch the recovery off this so I
think that's the main thing but I think
what we need to recognize there is now
bifurcation of the dollar in the markets
dollars doing very well against GM
currencies against commodity currencies
but against the euro and the yen of the
lights the dollar actually is taking a
bit of a backseat because the problem
line is as China devalue China slows you
know to an extent it's gonna lead the
Fed to basically hike more slowly this
has not been such good news again say
that you're already and help me with
your yen call out three four and five
years where's yen three four or five
years from now I think he is gonna be
tagged weaker but I think the short term
in fact if anything the yen's probably
gonna be stronger think about it going
to tomorrow if the felt within hike
rates the yen is gonna be stronger
because stock markets gonna go down if
the Fed this is my crazy yen's probably
differential between you at Bank of
America Merrill Lynch and Goldman Sachs
is to a weaker yen through some further
form of abenomics that implies a Rubin
like dollar doesn't it I think to some
extent yes absolutely if I think should
extended the u.s. until now is willing
to accept for the yen weakness but I
think that those days are coming to an
end
writing somebody de Troyes already
calling up somebody in Washington
somebody's watching you this is my point
you know David rhew that this is not
solved by economists it solved by
manufacturers like Detroit or frankly by
the State Department isn't it absolutely
especially now with Donald Trump and
basically Mario basically ruble you're
talking up you know basically the whole
story about China Japan taking jobs away
from the US I think you have to believe
the soonerlater he was very critical
here have you been advising mr. Trump on
economic policy not yet Rubio also to
some extent it's the great American
pastime to predict our own decline but
does anything threaten anywhere in the
future of this exorbitant privilege not
really I mean I think in fact this whole
SDR business around China
yeah fig leaf in the u.s. is in
a very enviable position that nobody
else is in right now so there's no
question he was coming back hello for
the question is candy you as the couple
from the rest of the world as the west
of worlds flows and I think at what
point in the u.s. we'll be forced to
join the currency war because a dollar
and the reaming be remained the two
strongest currency in the world we'll
just see what the Chinese basically no
longer won a strong currency the
question is how much longer the US will
find a strong currency desirable and
because so much is invoiced in dollars
as well you know we the currency war
works better for us than it does for
anybody else until what is the unti for
our viewers out there that don't know
modigliani-miller to our viewers that
don't really understand reflation versus
inflation what is the trip that turns us
from a benevolent strong dollar into a
troubled strong dollar I think you know
honestly I think you know this is where
they remain be able to devalue which is
my prediction I think my prediction
isn't the biggest story in the next six
months is going to be acceleration it
may be devaluation now it's gonna that's
gonna basically competitor you wishing
around the world commodity prices gonna
come come down sharply it's gonna be
highly deflationary you I think that's
when the profit thank you so much with
this core call the second derivative of
what we will see in the end we got
calculus into the six o'clock hour
that's cool