A weak dollar scenario…a policy prescription from Mr. Soros?

We do our best to build alternative plausible scenarios that are in competition to our current trading positions; we say our best because we know by virtue of taking a position, the bias already exists. One of the scenarios we laid out recently in a seminar was our view the dollar had the potential to become the carry trade currency (borrow dollar at low rates and reinvest in higher yielding asset classes) should the US government conclude a weak dollar is what’s needed to get “things moving again” and move back into an implicit weak dollar policy environment (yellow area in the chart below).