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87 sats \ 8 replies \ @TomK OP 4 Jul \ parent \ on: Yen in free fall econ
we are really experiencing one of the biggest shitshows of all time. let's see how the euro will behave if the yen continues to fall
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113 sats \ 1 reply \ @riberet19 4 Jul
I think I am not wrong in saying that the euro will be one of the losing horses in all this.
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87 sats \ 0 replies \ @TomK OP 4 Jul
absolutely. but it is so difficult, and has been from day one of the euro's introduction, to filter out adequate figures from this non-transparent fog.
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75 sats \ 5 replies \ @siggy47 4 Jul
I have to believe that behind the scenes the ECB and BOJ are furious at the fed. The US still enjoys the exorbitant privilege of being the reserve currency (for now), but it's only acting out of self interest. Of course it's a delicate balance. A strong dollar will destroy exports.
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71 sats \ 3 replies \ @TomK OP 4 Jul
But always keep in mind that Japan is the strategic partner of the US in the Pacific region. the euro, the moment it became a threat as a reserve currency and settlement layer, immediately became the enemy of the dollar. The Fed will not let the Bank of Japan fall and will offer sufficient swap lines in the event of liquidity problems in the euro-dollar market. I am not so sure about the ECB
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101 sats \ 2 replies \ @siggy47 4 Jul
Yes, I agree. It might even happen with the euro in the unlikely event that it becomes disorderly. If either currency gets in real trouble the whole world will be devastated. I'm talking about these gradual declines, which slowly make life miserable for the average citizen.
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71 sats \ 0 replies \ @TomK OP 4 Jul
and the debt continues to accumulate point that means that the money supply has to be expanded further and the currency continues to lose purchasing power accordingly. the lower classes of society are literally being pushed into the ground. disgusting
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71 sats \ 0 replies \ @TomK OP 4 Jul
and the debt continues to accumulate point that means that the money supply has to be expanded further and the currency continues to lose purchasing power accordingly. the lower classes of society are literally being pushed into the ground. disgusting
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54 sats \ 0 replies \ @Bell_curve 4 Jul
So all these global connections create fragility because everyone has to bail out the weakest link?
A system of interdependence is a bug 🐞 not a feature?
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