Two weeks ago we said that the unprecedented (and continuing) surge in the dollar is the result of a historic, 12 trillion dollar margin call, as issuers of dollar-denominated debt obligations around the globe, seeing their cash flows collapse scrambled to repatriate funds ahead of coming dollar maturities. The result was the sharpest dollar spike in decades. Of course, such a margin call meant that not only was the economy about to crater but it could also drag the entire global financial system with it unless policymakers somehow found a way to inject trillions of fresh liquidity into the system and restore some ... (full story)