Dollar Funding Shortage Is Accelerating Similar to 2008
The divergence between Fed policy (tightening) and the policy of every other global central bank (easing) has caused another dollar (currency) shortage similar to Lehman.
This is all in accordance with the Deflationary Hypothesis
According to the global deflation hypothesis, as elucidated by Prechter in "Conquer the Crash", extreme deflation will bring a contraction of the money supply as dollar liabilities exceed assets amid real-time asset "re-pricing". The resulting reach for dollar liquidity will cause a massive dollar rally further exacerbating the embedded solvency and liquidity issues.
The Globalized Ponzi Scheme is Short Dollars
In other words, the dollar lost 98% of its value since 1913 and its status as global reserve currency meant that it became the most shorted financial instrument on the planet. The deflationary crash will unwind that latent short position which is embedded not just in currency swap lines as explained by Zerohedge, but also in many other facets of Globalization, including commodity contracts which are priced in dollars and multinational profits which are repatriated in dollars. Most derivative contracts are implicitly short dollars as well. NYSE margin at an all time high: long stocks, short dollars.
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The Ponzi unwind is already well underway
