and monetary channel is clogged (as Ben told you). Fed is lending directly to corporate America and there is no credit USD money generated from the banking system.
On the contrary, Euroland banking system functions well and generates huge amount of credit money after ECB injected huge amount of money into the market.
If you check carefully, the USD appreciation accelerated after Oct 1, exactly after the LIBOR USD hit another 6% peak. USD's strength will not last long, its strength kills US exports.
Now is the time to buy more dirty cheap gold since big inflation will emerge in US when inter-bank lending returns to normal in 12 months.
