Several people mentioned that the fed will start defending the dollar when the bond market makes them. Can someone explain this? From what little I know about this, I think the theory is that the falling dollar will cause inflation and then the bond markets will demand higher interest rates. However, from what I can see, as long as the government prints out monthly interest rates that say we have no inflation (even if that’s just a ridiculous bald faced lie) the bond markets are believing them. Maybe I’m wrong about all this. Can someone explain this some more? Thanks,
