Central Bank Hunting Season Opened
733 sats \ 3 comments \ @TomK 23 Jan econ
Is it just me or is it true that central bank hunting season is officially open? Billions of dollars of communist intervention in China Billions of euros of ECB purchases of corporate bonds in Europe - this has to end well!
If the Fed holds its feet still now and stalls for a bit, it will emerge as the big winner from the race to the bottom. This is its big chance to continue defending the US dollar as the most important currency and security in the western hemisphere.
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21 sats \ 1 reply \ @go 23 Jan
How do you figure BRICS works into this? Every dog has his day. I see it being considered by the global fiat community as a good solution until it's not.
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0 sats \ 0 replies \ @TomK OP 23 Jan
My base case still is that their main goal is to withdraw their trade from the Petrodollar (what they are doing quite successfully). Next will be collateralizing growing parts of internal trade by using gold or a basket of energy/ PMs to gain trust. But: I still can't figure out a world where the USD would be the inferior payments and reserve asset network if You think of what they are doing now like establishing SOFR.
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0 sats \ 0 replies \ @quark 23 Jan
And Japan still with negative rate They may think, if Japan can, we can too!
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