The dollar fell again on Thursday after suffering its biggest daily plunge since 1985.
The downward whoosh stemmed from comments made by Federal Reserve earlier in the week in which the central bank said they would buy long-term Treasuries -- a move that should bring down mortgage rates and jumpstart home buying.
Why is that bad?
Some investors argue that buying up 30-year notes is akin to printing money. They say buying Treasuries means the Fed will increase the size of it's balance sheet even further -- a balance sheet which has already doubled in size in the past six months. That would spew dollars into global markets and lead to an oversupply of the world's main reserve currency.
“Welcome to crazy town,” says Jeff Macke on CNBC's Closing Bell. “Population you and me.”
Macke feels the Fed's latest move is such a game changer that it’s nearly impossible for investors to anticipate the ripples. For example, how does it impact Japan? “It’s a real problem for the Japanese who are trying to weaken the yen,” explains Macke.
It’s damaging for their exports, like cars made by Toyota or electronics from Sony .