Dollar Debasement Mode

Now that the Fed has reinstated yield throughout the markets, we can take advantage of this… by finding the securities that will pay us more than 5% while protecting our principal.

Chiswick, London

February 1, 2023

By Tom Dyson, Investment Director

Did you notice what happened on October 13, 2022?

I admit, I missed it. Although it was right under my nose.

I think there may have been an international agreement to devalue the dollar that day. 

There were no big announcements about this or any splashy press conferences outside famous hotels. They haven’t even said it publicly. But the clues are there… 

(Hat tip to Luke Gromen and his excellent newsletter fftt-treerings.com for pointing this out.)

First clue: there was a joint IMF/ World Bank meeting in Washington that week. Janet Yellen attended. 

From Bloomberg, October 13:

“In Washington, where the International Monetary Fund, and World Bank are holding a semiannual gathering this week, the strong dollar has been dominating conversations, according to a person familiar with the matter.”

“Finance ministers have brought it up with the IMF, US Treasury, and the Fed directly, the person said, asking not to be named as the talks weren’t public.”