Ponder this:
When countries that don’t have reserve currencies
desperately need reserve currencies to pay their debts that are
denominated in reserve currencies and to buy things from sellers
who want them to pay in reserve currencies, their inability to get
enough reserve currencies to meet those needs can bankrupt
them. That is where things now stand for a number of
countries. Is all this global risk priced into the markets
already?
exactly! that's why when everyone keeps saying the US Dollar is
going to crash because of all this printing, well one day there
will be a reckoning. but for now the Dollar still has big demand
for it being the 'best flea on the dog, the best house in a crap
neighborhood' - that demand is what keeps the US Dollar up. now
long term when we eventually lose that reserve currency then we're
f'd
Agreed. It is the best piece of dog poop that is available
and the Eurodollar takes its cues from the US dollar. A lot
of the Euro lending is swapped through Eurodollars and that keeps
our strength, but at some point (Russia, China and Middle East) are
pushing things in another direction. The oil situation is the
first stage because ultimately the USD is not a fiat currency it is
backed by oil (petrodollar) and so it will be an interesting couple
of years for sure.
Ponder this: When countries that
Posted by ssaffer on 23rd of Apr 2020 at 03:06 pm
Ponder this: When countries that don’t have reserve currencies desperately need reserve currencies to pay their debts that are denominated in reserve currencies and to buy things from sellers who want them to pay in reserve currencies, their inability to get enough reserve currencies to meet those needs can bankrupt them. That is where things now stand for a number of countries. Is all this global risk priced into the markets already?
dollar shortage as they all
Posted by highroller on 23rd of Apr 2020 at 03:49 pm
dollar shortage as they all need it. Gonna be a domino effect of defaults soon.
https://www.forexlive.com/centralbank/!/qe-finity-boj-to-remove-bond-buying-limit-20200423
exactly! that's why when everyone
Posted by matt on 23rd of Apr 2020 at 03:54 pm
exactly! that's why when everyone keeps saying the US Dollar is going to crash because of all this printing, well one day there will be a reckoning. but for now the Dollar still has big demand for it being the 'best flea on the dog, the best house in a crap neighborhood' - that demand is what keeps the US Dollar up. now long term when we eventually lose that reserve currency then we're f'd
Amen brother....once the dog gets
Posted by bojackson on 23rd of Apr 2020 at 05:21 pm
Amen brother....once the dog gets sick from all the fleas and dies, there are no more fleas.
Agreed. It is the best
Posted by ssaffer on 23rd of Apr 2020 at 03:59 pm
Agreed. It is the best piece of dog poop that is available and the Eurodollar takes its cues from the US dollar. A lot of the Euro lending is swapped through Eurodollars and that keeps our strength, but at some point (Russia, China and Middle East) are pushing things in another direction. The oil situation is the first stage because ultimately the USD is not a fiat currency it is backed by oil (petrodollar) and so it will be an interesting couple of years for sure.
but why would we lose
Posted by arun on 23rd of Apr 2020 at 03:55 pm
but why would we lose that status... we are in a much better shape than many other countries ...Even to this day US leads innovation