The real worry is the economy in the Eurozone.
A litany of problems, from too much debt to deflating housing bubbles in Vancouver and Toronto.
Powell, Draghi, Kuroda, et al.: Did ya see this NBER study?
During the selloff in Dec., the BOJ shed $31 billion. But in Jan., it piled on.
The banking lobby and the ECB will have a cow.
This is embarrassing in the land of super-stimulus via the ECB’s negative-interest-rate policy and years of QE.
To diminish the dollar’s role as a global reserve currency, central banks would have to dump the dollar. So, let’s see.
Debt out the wazoo, but someone is still buying it.
But will the big banks play along?
China has a lot of balls in the air at the moment.