central banks flood credit markets with cash, page-5

This is the reason why the US dollar will inevitably decline this year. The difference between the red line and the bars on the chart below is the amount funded by new borrowings each year. This year, the gap has gone exponential, just when overseas buyers have deserted the US bond market. The only way to fill the gap is for the Fed to monetize, buying up bonds at a faster rate than China, Japan and the Middle East, combined, have ever done.