Rough Waters Ahead For The US Dollar

A “paradigm,” as outlined by Ray Dalio, is a time period throughout which “Markets and market relationships function in a sure manner that most individuals adapt to and finally extrapolate.” A “paradigm shift” happens when these relationships are overdone, leading to “markets that function extra reverse than just like how they operated in the course of the prior paradigm.”

Previous to 2008, there have been 4 such paradigm shifts, every recognized by a cloth change within the Federal Reserve Board’s financial coverage framework in response to unsustainable debt development. In 2008, we noticed the fifth and most up-to-date paradigm shift, when former Fed Chair Ben Bernanke launched quantitative easing (QE) in response to the Nice Recession. Since then, the Fed has been working in uncharted territory, launching a number of rounds of an already unconventional financial coverage with detrimental outcomes.


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