Japan Needs A Stronger Dollar, China Wants A Weaker Dollar: The Fed Can't Please Both
![Japan Needs A Stronger Dollar, China Wants A Weaker Dollar: The Fed Can't Please Both Japan Needs A Stronger Dollar, China Wants A Weaker Dollar: The Fed Can't Please Both](https://5ux.com/sites/5ux.com/files/styles/medium_250/public/resize/remote/8b90d2bd542eb3e757400198f437d39e-550x334.png?itok=5j_mKpyj)
Submitted by Charles Hugh Smith from Of Two Minds
Japan Desperately Needs A Stronger Dollar, China Desperately Wants A Weaker Dollar: The Fed Can't Please Both
The FX market is about to blow up in the Fed's face, and there's nothing they can do about it.
Foreign exchange (FX) is a zero-sum game: if one currency weakens, another must strengthen. Since the value of a currency is relative to other currencies, all currencies can't weaken together: at least one currency must strengthen as others weaken.