Trust in #Dollar #UST as a reserve currency eroding rapidly, with yields on #US10Y #US2Y et al. exploding before our very eyes.
Every principle of global economic stability & equality and functions underlying the original #BrettonWoods agreement is more or less long gone.
/1
Every principle of global economic stability & equality and functions underlying the original #BrettonWoods agreement is more or less long gone.
/1
Due to the #petrodollar underpinning 85%+ of our global financial system, and because its abandonment would cause a hard reset (and the strength of #American industrial #militarycomplex), #DXY still reigns as #reservecurrency.
But the trust component is rapidly diminishing.
/2
But the trust component is rapidly diminishing.
/2
Obviously, I'm not predicting that we're going away from it as a reserve currency. Not deliberately, anyway.
But military might, a value derived from underlying commodities (RIP 1971), and trust (RIP 202X?) are historically the 3 musketeers keeping reserve currencies on top.
/3
But military might, a value derived from underlying commodities (RIP 1971), and trust (RIP 202X?) are historically the 3 musketeers keeping reserve currencies on top.
/3
Aramis (gold standard), and arguably Athos (trust), is either dead or in a coma.
Porthos (military) still doing quite well, although getting very bloated.
Without D'Artagnan (petrodollar system), the tide would be overwhelming and we'd be having #Weimar chats now.
/end
Porthos (military) still doing quite well, although getting very bloated.
Without D'Artagnan (petrodollar system), the tide would be overwhelming and we'd be having #Weimar chats now.
/end
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