Fiscal Dominance Will Break The Dollar's Long-Term Trend - Seeking Alpha
Fiscal Dominance Will Break The Dollar's Long-Term Trend - Seeking Alpha
Source: Seeking Alpha
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DW NOTE
The dollar doesn't break because of fiscal dominance in the abstract — it breaks when creditors stop rolling the debt at rates Treasury can afford. The US ran a $1.4 trillion deficit through June while the Fed held rates at 3.65%, which works until it doesn't. With the debt ceiling now at $41.1 trillion and deficits running 3% higher than last year, the question isn't whether fiscal dominance exists, it's whether bond markets will keep pretending it's sustainable.