From the Fed through the Bank of Japan and up to the ECB, the intertwining of our central banks in the financial system is now intense, inbred.
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A financial crisis occurs quite rarely, always in the event of liquidity crises like the great financial stress in 2008 or at the start of the Covid-19 pandemic. During such an event, there is a gluttonous appetite for the US dollar as the entire planet is sorely lacking it. This results in the most fragile players throwing in the towel like what happened at the start of the year in Egypt, where its currency weakened further against the dollar. It must be said that 2.2 trillion of these dollars have been withdrawn from the various markets, State treasuries, and corporate and private accounts. The demand for the greenback is causing inflation and the US Federal Reserve is doing its best to combat it.
In reality, it is a “two-wire fan” American central bank ? somewhat schizophrenic ? that the experts see emerging before their eyes thanks to the repetitive crises. This unavowable dichotomy could only come to light thanks to the very energetic rise in its interest rates in recent months. Indeed, while the US Federal Reserve stiffens its monetary policy in order to break growth by slowing consumption; at the same time and in parallel, it continues its mission as a major provider of liquidity in order to contain volatility on the sacrosanct f...