One comment: All historic correlations will be obsolete if US dollars are no longer the world currency.
Nice snarky one-liner. But devoid of facts
FACTS :
1. The LIBOR index is a rate based on dollar-denominated deposits.
2. Even as the dollar sinks to unprecedented lows against the euro, the relationship I pointed out still holds.
3. The British Bankers Association publishes LIBOR rates in 10 currencies. At least 8 of these are not the world’s reserve currency.
OPINION:
The loss of dollar’s role as the world’s currency will likely put upward pressure on interest rates in US dollars, but it will not likely significantly impact the relationship of these rates measured in London versus the US.
