US has just done something with its currency - the world doesnt know its just been whacked with a baseball bat
$DXY vs $UUP
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$DXY vs $UUP
🧵👇
Opposing currencies 1 at a time
Remember currency pairs are ratios
If USD gets stronger the opposing currency like cny gets weaker.
Here is chinese yuan
That sudden move in UUP?
Thats gun leave a mark on the chinese economy
To fix this, and return to ratio, china has to print
Remember currency pairs are ratios
If USD gets stronger the opposing currency like cny gets weaker.
Here is chinese yuan
That sudden move in UUP?
Thats gun leave a mark on the chinese economy
To fix this, and return to ratio, china has to print
Here is the Nigeria currency.
An oil producers.
They have a lot of USD denominated debt.
finance.yahoo.com/news/nigeria-d…
An oil producers.
They have a lot of USD denominated debt.
finance.yahoo.com/news/nigeria-d…
Malaysia
They has over 62B in non-myr debt (probably USD debt) - they cant print USD.
With USD revaluating like this?
It means that debt they owe just got a lot more expensive
focus-economics.com/country-indica…
They has over 62B in non-myr debt (probably USD debt) - they cant print USD.
With USD revaluating like this?
It means that debt they owe just got a lot more expensive
focus-economics.com/country-indica…
Some countries peg their currency to the dollar - like UAE (united arab emerates)
They are struggling to maintain that peg.
They are struggling to maintain that peg.
Argentina was in trouble long before this currency reset, but the currency reset made it worse.
@BowTiedMara - i know this isnt the only reason they devalued, but with foreign denom debt they *HAD* to do it.
@BowTiedMara - i know this isnt the only reason they devalued, but with foreign denom debt they *HAD* to do it.
Turkey - also in trouble long before this currency reset
also a lot of foreign debt
also a lot of foreign debt
Chile -
This up on this chart means the foreign CB is printing money to devalue their currency
This up on this chart means the foreign CB is printing money to devalue their currency
India
But not all are printing.
Mexico is #1 trade nation with USA.
They are on opposite spectrum - they've bought a LOT of USD treasury bonds.
They are doing this b/c if they dont US will coup them. And the US has been talking about mxn coup for a while.
americasquarterly.org/article/the-pe…
Mexico is #1 trade nation with USA.
They are on opposite spectrum - they've bought a LOT of USD treasury bonds.
They are doing this b/c if they dont US will coup them. And the US has been talking about mxn coup for a while.
americasquarterly.org/article/the-pe…
Canada, eh?
Canada is a major oil producer for US.
US needs canadian currency weaker.
Remember a weaker currency is inflation....
Canada is a major oil producer for US.
US needs canadian currency weaker.
Remember a weaker currency is inflation....
Hong Kong had a peg to USD (1,2) - it broke with what US did.
And now they print to move with USD.
And now they print to move with USD.
jPanesa
Notice how everything so tight to the dollar right up until 2023....then chaos.
Notice how everything so tight to the dollar right up until 2023....then chaos.
USDEUR
Europe is part of the big club.
So they are cool to US govt - they do what they are told.
Europe is part of the big club.
So they are cool to US govt - they do what they are told.
USDSGD
Singapore is cool - they also buy us bonds and do what they are told.
Singapore is cool - they also buy us bonds and do what they are told.
The russians are not cool.
They wont buy US bonds. But they have gold and they have oil.
They wont buy US bonds. But they have gold and they have oil.
Bitcoin - is not cool cause it bucks the CB game
it doenst buy US treasuries
it also doesnt print
And its universal on globe while all other CB's are printing.
it doenst buy US treasuries
it also doesnt print
And its universal on globe while all other CB's are printing.
yemen
you may remember them from the news because US is bombing the crap out of them right now.
you may remember them from the news because US is bombing the crap out of them right now.
Syria - its more expensive for them to make weapons if they need to import stuff to make missiles and stuff.
Lebanon -
Israel - US will do swaps to protect their currency because Israel owns US
USDKRW - korea buys US bonds like good boys and girls.
Iraq - everyone loves that sweet sweet crude...
Their currency is quite strong on world stage.
Its the oil.
Their currency is quite strong on world stage.
Its the oil.
Now - think about this-u are in Nigeria...ur gov warned (or you had inside information) that the country is going to massively weaken its currency.
Your options are:
a) buy US stonk
b) buy bitcoin
c) buy gold
d) buy local realestate
If you guessed buy US stonk-bingo
#ItsAHedge
Your options are:
a) buy US stonk
b) buy bitcoin
c) buy gold
d) buy local realestate
If you guessed buy US stonk-bingo
#ItsAHedge
Now with all this in context, its important to again review whats going on...
USD is the worlds reserve currency.
Now consider the implications of what the US has done.
USD is the worlds reserve currency.
Now consider the implications of what the US has done.
Gold is a special case....
2 charts - the first with gold inverted.... (higher price gold in green goes down)
2 charts - the first with gold inverted.... (higher price gold in green goes down)
and uninverted
see how that works?
see how that works?
notice the swap....
Gold *IS* a hedge against US currency games. Russia loaded up on gold.
Gold didnt protect their currency.
People who owned gold were protected - if they could get it out of the country (they cant)
Gold didnt protect their currency.
People who owned gold were protected - if they could get it out of the country (they cant)
For any currency - if you want to play ball in a EU$ system, you must buy US debt.
Think of US bonds as gold.
When your country buys US debt, the gold (bond) pile in your country gets bigger, US smaller and you have a stronger position in the global financial system.
Think of US bonds as gold.
When your country buys US debt, the gold (bond) pile in your country gets bigger, US smaller and you have a stronger position in the global financial system.
But - they dont need to just buy US treasuries - its any US asset - Stonk, US realestate, Bonds...just has to be in sizable amounts.
And you effectively peg your currency to the dollar.
The move US made with its currency is massive - and it tricked the entire world.
And you effectively peg your currency to the dollar.
The move US made with its currency is massive - and it tricked the entire world.
Now *EVERYONE* that tried to buck the USD system is now *WAY* behind on the USD rent.
To match what USD has done - they buy a mountain of US assets, or, they print like crazy and devalue their local currency.
To match what USD has done - they buy a mountain of US assets, or, they print like crazy and devalue their local currency.
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