Yep. When the QE stops, the debt balloon will pop. Bonds will collapse. Interest rates everywhere will skyrocket. Economic activity will screech to a halt. Pensions will stop. Most government employees will be laid off permanently. Police agencies will remain employed to stop former pensioners and employees from rioting.
As government employees and pensioners lose their incomes, their foreclosed properties will be sold to the Chinese.
Hang socialists
Socialism Is Legal Plunder - Bastiat
BIG GOVERNMENT IS CRONY SOCIALISM
imho there are two things that have kept the dollar trending essentially sideways for the last two years.
The first is that the USA is producing 1 million barrels@ day more this year as it did last year and looks to produce 1 million barrels@ day more next year. This changes real world capital flows.
The second big thing that’s happening is that the federal deficit is falling fast. Current estimates are that the federal deficit will fall from 1 trillion last year to 650 billion this year. If deficits fall next year by similar amounts then the federal deficit will fall within normal ranges of years past.
Things could happen very quickly —like US growth rates could expand—for example if the supreme court declares obamacare unconstitutional this fall/winter. That’s very much in the cards as they have moved up a couple of key cases to their dockets.
Fast US growth rates would knock out the federal deficits in a year or two—and the fed would be forced to stop printing money.