Authored by Bruce Wilds via Advancing Time blog,
It appears the Fed Chairman Powell has a problem understanding how Main Street works and is more interested in shoring up those in the financial sector. His statements point to him having little interest at this time in forcing some kind of action to contain "soaring risk asset prices." While some market watchers have voiced concern the Fed may be forced into some kind of action this does not appear to be on Powell's radar. The fact is, the growing divide between stock prices and earnings expectations signal a dangerous imbalance forming in the market. If this situation spins out of control, be prepared to "watch out below" as things begin to fall like a stone.
Powell seems content in his role as the great enabler moving the global financial system forward. This may even include manipulating the dollar lower which is a very dangerous game. This is especially true at a time so many people are concerned about fiat currencies becoming worthless due to governments abusing their rights to expand the money supply by printing with abandon. Manipulating the value of the US dollar is a very dangerous game because it undermines the global currency market. In many ways, the growing popularity of cryptocurrency is rooted in central banks' decision to go down this destructive path.
The Fed Has Allowed This To Happen
A major part of the dollar's role as a reserve currency includes acting as a benchmark by which other currencies and commodities can be valued. A stable dominant currency results in other currencies being forced to toe the line...