NEW YORK (Reuters) - The dollar hit a more than two-year low against the euro on Tuesday, and riskier currencies including the Australian and Canadian dollars gained as optimism that U.S. lawmakers would enlarge stimulus payments to individuals boosted risk sentiment.
The thing about the trilemma is you have one market maker fending from two angles. The market maker ends up thrid in line and the pegs go hardwire.
If we let treasury, independently, and Constitutionaly have a small double spending budget then Treasury can lower the dollar value, by itself and the fed can still keep up with the S/L business, and we get free capital flows. Mathematical independence, the Treasury can execute its double spending in parallel with the Fed without consultatation or collisions.
Thus, if we want a slightly cheaper dollar, it is up to Treasury on the 'when and where' and we do not need a bunch of financial reporters attempting to reverse engineer some Keynesian bait and switch Rube Goldburg monstrosity.
Here is how our current central banker works:
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