All this matures this friday.
Tin foil hat time - swiss banks own a LOT of us equities.
so they took a loan and bought tons of bonds.
This causes dxy to weaken yields go down, stonks go up, giving swiss a chance to dump equities.
then they repay that loan on friday.
further evidence - notice how the usdcnh lines riiiite up with the 30y....
buying bonds will weaken usd, moon stonks.
now swiss own bonds.
next they unload the dogshit (tech stonks) all day to anyone who will buy them.
@SantiagoAuFund this is how the dxy member states have mitigated the dollar from hitting the stratosphere?
Each takes turns buying US treasuries - yesterday was a nice touch since the bond market is somewhat illiquid to handle such a huge demand right at the open?
You wanna see this visually?
Ok - 1) dxy relative to oil kinda tracks & falls below relative price of oil
2) oil tracks close
3) swiss buy 11B in bonds weakening dxy (that the swiss line) - stonks moon. Now relative to oil DXY a LOT weaker than oil.
So now rates++=big oil--
This prob why DXY has stayed relatively calm & in a trading range vs going to 120 (or higher) - these swap games and CB $ games - Swiss one is the one I caught - im sure there have been others more sneaky
In a currency war, you win by out "devaluing" your currency vs your trading partner.
You do this to gain market advantage - your products become CHEAPER than your competitor, killing your competitors industry.
The white line is china - when the white line goes up (9 of them) china devalued.
Notice that giant plunge near #4?
Notice the yellow line - thats global liquidity - and its inverted - so you can clearly see central bank interventions and its impact on the chinese currency.
G7 loaded up on debt, and out china'ed china....
Lately they stopped - because inflation now is raging.
🧵👇
Remember - currencies are a RATIO.
So when chinas currency goes up on this chart - it gets WEAKER relative to USD.
Which means the USD gets STRONGER.
Stronger USD = bad for US exports, particularly to china.
It means China wins global trade vs US because everything is so cheap.
Tariffs equalize trade and offset this nonsense.
Tariffs make this cheap chinese export due to currency games less competitive.
US cannot control what china does, but it can control what it imports from china.