The single most trusted dominant currency is the US Dollar. It is a requirement for all financial transactions whether its Euro, RMB, SEK, or Yen. There is only one source and that’s the US Fed selling USTs to the world.
When a country such as China wants to import-export goods, they must buy Dollars to enact transactions.
“But what if Sweden and Japan trade???”
Again, you’re not listening. The Dollar is REQUIRED for all transactions under the covers because the US Dollar is the most liquid.
Only the US can run such deficits that allows global trade to operate smoothly.
“But why is the dollar so powerful?”
Simple. Post WW2, there was only 2 powers left. The US & Soviet Union, which went on a global rampage to acquire territory, secure resources, and dominate supply chains. The US won and the Dollar became sole reserve currency. Trust & politics
“What about China?”
China has a LONG term plan to replace the $ called BRI. It’s intent is to secure resources to feed its population and industrial sectors, economics and military interests. They still need roughly 62% of their foreign reserves in $USD to keep the RMB stable.
“What about the Euro??”
The ECB is broke. Plain and simple. They need liquidity injections routinely to avoid total collapse of the Euro. 2012 EU bank crisis had ECB leaders beg the US Fed for $2 trillion. This was used for their junk bond buying purchase to prop up the economy.
“What about Bitcoin???!”
Ah, my recent favorite targets. Charlatans like @MarkYusko and misguided ideologues like @LukeDashjr understand NONE of this thread. Bitcoin needs fiat conversion, access to govt regulated internet, and govt approval for exchanges to operate.
To replace the Dollar, a currency needs to be at the core of product creation(which btc is nowhere near), issuing authority securing supply chains, and politically entangled with decision-makers. Baristas and Social Justice warriors are not at the top of the food chain.
“Gold! That’s the Dollar weakness..”
A wise man told me: “Gold makes logical people illogical”. Gold, oil, commodities are used today to arbitrage trade to gain or retain dollar value. You can’t move gold, there are zero transparent audits of gold, lacks trust for trade.
Without a logical alternative that can substitute the dollar concerning military superiority, trust, liquidity and political economics.... the Dollar will be the reserve currency for the foreseeable future.
Should have added this graphic
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The U.S. Treasury plans to sell $105 billion of Treasuries this week (Feb 6th) & could impact the economy and markets. My view is that the Treasury Secretary, Janet Yellen, is dangerously incompetent in her handling of the Treasury's finances and our contacts
within the Fed say Powell wants the data to be inflationary to get Yellen and the White House off his back. Yellen is said to be offsetting the Fed's Quantitative Tightening (QT) by issuing short-dated bills and Treasury General Account (TGA) and i believe this is causing a
liquidity-driven inflation problem. We know that Powell is handcuffed and can't raise Fed funds rates to 7% as it could cause a crisis that would mean he has to cut rates and re-launch inflation, with a high chance of repeating the 1970s. Issuing 10s and 30s bonds at current
Let me see if I got this right… Biden, @SecBlinken and cohorts of liberal morons push a false Trump-Russia story who the FBI, ran by Comey who is a liar, had agent Charles McGonigal investigating the claims all the while he was taking bribes from Albania, likely Lulzim Basha,
who he himself was caught taking $500,000 of Russian funding. So what does our dipshit State Dept do? Well they have our ambassador to Albania @USAmbAlbania & Gabriel Escobar parade Basha around the Balkans & US trying to promote him & bash Sali Berisha because they realized
how bad they screwed up and are trying to protect the socialist govt in Albania now from narco trafficking rumors on top of aiding Russian funded politicians who corrupted FBI agents.
You have to argue with ChatGTP and point out inconsistencies and reword questions on a topic to finally get them to agree their green polices are stupid.
Now i had to correct its responses to climate change and renewable energy lol
The Federal Reserve has certain emergency powers that allow it to conduct business outside of its normal mandate in order to stabilize the financial system and promote economic growth during periods of crisis. These powers are outlined in Section 13(3) of the Federal Reserve Act,
which was added during the Great Depression.
Under this section, the Federal Reserve can lend to non-depository institutions, such as companies and municipalities, in "unusual and exigent circumstances." This lending is done through the so-called "discount window," which is the
primary source of funding for banks during times of stress.
Additionally, the Federal Reserve also has the authority to conduct open market operations, which involve the buying and selling of government securities, as well as other financial instruments, to stabilize financial
The new Xi inspired Politburo will probably look frightening to the West because of how many Xi people have been installed and the entry of a bunch of aerospace and military backgrounds. Worryingly is that the current US political situation is plumbing new lows and this won't
help combat China long term. The biggest concerns for the US is China is simply making huge progress on technology on its own (of course after we handed it all to them and they stole the rest) and the fact they are indespensible to the world in terms of supply chains.
This Politiburo will focus on technology advancement and biding their time for the US to fall on its own sword of political discourse. Their biggest fear is Russia collapsing into chaos which would put a dent into their long term energy and commodity needs. Looking for status