The world is "suffering from propaganda" according to former hedge fund manager Hugh Hendry, who explains to BloombergTV's Jonathan Ferro that, despite what we are told every day about a "tsunami of money" flooding the world, "The Fed is not printing money, it is simply increasing central bank reserves."

How can one explain, he asks, how the dollar has strengthened so much while The Fed's balance sheet has exploded...

What the global economy needs, Hendry explains, is more dollars and in lieu of The Fed's "responsible" actions, it should abrogate responsibility to The Treasury and focus attention on the FX markets (not the fixed income markets).

The dishevelled Scot reflects on our Ayn-Randian world and says The Treasury should stand up and proclaim that the Dollar Index should trade at 60 (about a 40% devaluation from here).

"Kaboom! Can you imagine the pandemonium... but what would they do," he asks himself rhetorically, "they would print their currency and use that to buy dollars to stop their currencies appreciating."