Risk of One More Major Dollar Surge Before Recovery Mode Economy: Hardy

The video discusses the performance of the dollar against various currencies, highlighting its support levels and potential for a surge. It examines the role of the Federal Reserve's balance sheet in addressing liquidity and solvency issues. The discussion also covers inflationary and deflationary risks, particularly in asset and bond markets, and the potential for an eventual inflationary shift.

How has the dollar been performing against emerging market and G10 currencies?

• It has been consistently rising.

• It has been edging towards support levels.

• It has been stable without much change.

• It has been declining sharply.

What is a key concern regarding the Federal Reserve's actions?

• The effect on employment rates.

• The extent of liquidity pumping without addressing solvency.

• The risk of increasing inflation.

• The impact on global trade.

What is the longer-term risk associated with the policy response discussed?

• A potential inflationary shift.

• Deflationary trends in the short term.

• An increase in unemployment.

• A decrease in interest rates.

What is the initial economic impulse mentioned in the context of a credit crunch?

• Deflationary.

• Inflationary.

• Hyperinflationary.

• Stagnant.

How does the market seem to be pricing inflationary risks?

• Aggressively in all cases.

• Not at all.

• Aggressively in some cases and not in others.

• Uniformly across all sectors.