End to Dollar Carry Trade Isn't Here Yet

The disappointing December payroll numbers threw cold water on expectations for a near-term extension of the dollar's rally.

The report had been billed as a key marker for the greenback: a positive reading would have cemented the dollar's recent gains, limiting its role as cheap funding currency for bets in riskier assets by raising expectations of U.S. rate hikes.

Myopia appears to be the price of statism over capitalism. We wait with bated breath the release of government reports with a proven history of bias and inconsistency. If that's not bad enough, a barrage of spin suggests that the deviation between the headline numbers and consensus expectations defines and drives the "economy".

The long-term cycles, while hardly straight-line trends, exist not because of statism but rather capitalism.

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Source: online.wsj.com