This is an educational post - compliant with the house rules on text-based contributions - showing some of the tension between monetary policy taken by the FED and real world fiscal issues at deeper levels. Click and drag chart if all text does not show. Thanks.
The tension has caused whipsaws in the US Dollar, and price of Gold. The IMF has declared a global recession and several countries have gone into recession.
Reputable opinion out there is that the world is heading for an economic depression based on a 50 to 75 year cycle, which is coinciding with a 10 year recessionary cycle.
I have no doubt that central banks around the world will have limited success in propping up economies. I'm more concerned for the longer term view.
Last week extreme volatility took a break compared to the previous week. The next 2 weeks could see a return of volatility to indices and forex markets.
Stay safe, fellow traders.