Many might think USD's recent breakdown is transitory. But the thing is, the only way to temporarily prop up USD is to hike the FFR
, which will sink stocks, which will likely force more QE
, which then in turn will sink USD. On the other hand, if not propped up by the tightening of money supply, every USD drop is equivalent of a market rate hike - because you have to charge more interest for debt issued in a sinking currency. Keynesianism is full of such impossibilities conflicting one another, especially at the end of a Keynesian boom.