The mainstream media continues to ignore the plunging dollar as it hits a 2.5 year low versus the Euro...
While the plunging dollar is (for now) a stock market supporting factor, it has the potential to turn on a dime.
With people like former Fed. President Alan Greenspan now saying "The Debt Is In A Bubble," the clock is ticking louder for a major Debt Reset-which includes the Dollar as a unit of debt.
Has this "reset" already begun?
With the Dollar continuing to dive along with the flattening yield curve, one could argue that a debt reset has indeed begun.
It is certainly no secret, at least for those of you who follow this blog, that we are existing in a environment of financial extremes. Malinvestment across the spectrum of asset classes now exist because The Federal Reserve has artificially suppressed interest rates for the better part of a decade, creating bubbles to the upside as well as inverse bubbles.
The fact is simple: these distortions which exist across all the markets will correct to fair value at one point and again, one could certainly argue that a "Debt Reset" has already started...
So the question remains, has a debt reset already begun?
What to you think?
Gregory Mannarino @marketreport
