Bad! The U.S. Dollar: David Stockman (Yes, Bad! but not just yet...)

From David Stockman's Contra Corner:
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Why The Dollar Is Rising As The Global Monetary Bubble Craters

Contra Corner is not about investment advice, but its unstinting critique of the current malignant monetary regime does not merely imply that the Wall Street casino is a dangerous place for your money.

No, it screams get out of harms’ way. Now!

Yet I am constantly braced with questions about the US dollar and its impending demise.

The reasoning seems to be that if America is a debt addicted dystopia— and it surely is— won’t the US dollar sooner or later go down in flames as the day of reckoning materializes?

Won’t you make money shorting the doomed dollar?

Heavens no!  At least not any time soon.

The reason is simply that the other three big economies of the world—Japan, China and Europe—are in even more disastrous condition...

Wall Street analysts and economists tell it, Japan, China and Europe are just variants of the US economy with different mixes of pluses and minuses, experiencing somewhat different stages of the economic cycle and obviously shaped by their own diverse brands of domestic politics and economic governance...

Actually, not so.

Japan is a bankrupt old age colony.

China is the most monumental credit and construction Ponzi in human history.

Europe is a terminal victim of socialist welfare and statist dirigisme.

All three are attempting to defer the day of reckoning via resorting to a final spasm of money printing and central bank manipulation that is so desperate and crazy that it can only end in disaster.

So there is no global convoy of inexorable economic growth and progress.

Instead, we are entering a new era of spectacular financial disorder and credit fueled booms turning into unprecedented deflationary busts.

And it is the three big economies outside the US which will hit the wall first, causing the US dollar to thrive on a relative basis...
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Link: http://davidstockmanscontracorner.com/why-the-dollar-is-rising-as-the-global-monetary-bubble-craters/