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For years the prediction was the same. The dollar is about to collapse. It keeps not happening. Here is the piece most people miss. Dollar strain and record stock markets are not a contradiction. They are two different things. The strain is real. But so is this. Global capital... keeps flowing into US assets, because out of the whole world, this is where the growth and the liquidity are. And to buy US assets, you need US dollars. So the flows themselves put a bid under the dollar. Money comes in, it has to become dollars first, and that keeps the dollar strong against everything else. That is why the dollar has not fallen to its death, no matter how many times it was called. The demand for dollars is not sentiment. It is built into the act of buying America.show more

Jeffrey P. Snider

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22,132 Aufrufe • vor 1 Monat •via X (Twitter)

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Most people read the dollar exactly backwards. A rising dollar looks like strength. Strong America, good economy, the Fed doing its job. A falling dollar looks like weakness. Inflation, debasement, the end of dollar dominance. It is the other way around. A rising dollar usually means global funding is tightening. The world is short of dollars and scrambling to find them. That is not strength. That is stress. Think of a hurricane coming and everyone rushing to buy bottled water. The price spikes. That does not mean the water got stronger. It means people are scared and desperate. The dollar works the same way. When it surges against everything at once, it is telling you dollars are getting scarce, not that America is winning. That is why the dollar spikes in crises. The 1997 Asian crisis. 2008. The 2015 emerging market squeeze. March 2020. The 2024 carry trade blow up. The pattern is not random. None of this is really about the Fed or money printing. The dollar's exchange value is mechanical. It runs on the eurodollar system, the offshore dollar funding made of bank balance sheets, collateral, repo, and swaps. The biggest driver is dealer balance sheets. When dealers expand, dollars flow and the world feels calm. When they pull back, dollars get scarce and the dollar climbs. And this is the part everyone gets wrong. When foreign central banks sell US treasuries, the headlines scream that they are dumping America. They are not. They are using their reserves exactly as designed. When their markets are short of dollars, they sell treasuries to supply them. Sell treasuries, the dollar goes up. That is stress, not rejection. Which is why the dollar doom story keeps failing. They said QE would destroy the dollar after 2008. They said the deficits would collapse it. It never happened, because the problem was never too many dollars. It was not enough usable ones in the right places. So when someone tells you a strong dollar means America is strong, be careful. The strongest looking dollar is often the biggest warning sign. And a falling dollar is usually just the storm passing.

Most people read the dollar exactly backwards. A rising dollar looks like strength. Strong America, good economy, the Fed doing its job. A falling dollar looks like weakness. Inflation, debasement, the end of dollar dominance. It is the other way around. A rising dollar usually means global funding is tightening. The world is short of dollars and scrambling to find them. That is not strength. That is stress. Think of a hurricane coming and everyone rushing to buy bottled water. The price spikes. That does not mean the water got stronger. It means people are scared and desperate. The dollar works the same way. When it surges against everything at once, it is telling you dollars are getting scarce, not that America is winning. That is why the dollar spikes in crises. The 1997 Asian crisis. 2008. The 2015 emerging market squeeze. March 2020. The 2024 carry trade blow up. The pattern is not random. None of this is really about the Fed or money printing. The dollar's exchange value is mechanical. It runs on the eurodollar system, the offshore dollar funding made of bank balance sheets, collateral, repo, and swaps. The biggest driver is dealer balance sheets. When dealers expand, dollars flow and the world feels calm. When they pull back, dollars get scarce and the dollar climbs. And this is the part everyone gets wrong. When foreign central banks sell US treasuries, the headlines scream that they are dumping America. They are not. They are using their reserves exactly as designed. When their markets are short of dollars, they sell treasuries to supply them. Sell treasuries, the dollar goes up. That is stress, not rejection. Which is why the dollar doom story keeps failing. They said QE would destroy the dollar after 2008. They said the deficits would collapse it. It never happened, because the problem was never too many dollars. It was not enough usable ones in the right places. So when someone tells you a strong dollar means America is strong, be careful. The strongest looking dollar is often the biggest warning sign. And a falling dollar is usually just the storm passing.

Jeffrey P. Snider

103,944 Aufrufe • vor 3 Monaten

ICYMI, US🇺🇸 Treasury Secretary Scott Bessent: "Dollar dominance is essential…if you look at the new Venezuela...the dollar is going to be the centerpiece of their trade... We're seeing in the Iranian negotiations, the Iranians will be invoicing in dollars. Everything we are doing is pushing the dollar back...we're reinforcing it." The only thing the US has to reinforce dollar dominance is bullying and dropping bombs, which ironically destroys dollar dominance in the long-term. Every bomb the US drops is a message to the rest of the world to move away from the US dollar and this mafia system, not towards it.

ICYMI, US🇺🇸 Treasury Secretary Scott Bessent: "Dollar dominance is essential…if you look at the new Venezuela...the dollar is going to be the centerpiece of their trade... We're seeing in the Iranian negotiations, the Iranians will be invoicing in dollars. Everything we are doing is pushing the dollar back...we're reinforcing it." The only thing the US has to reinforce dollar dominance is bullying and dropping bombs, which ironically destroys dollar dominance in the long-term. Every bomb the US drops is a message to the rest of the world to move away from the US dollar and this mafia system, not towards it.

Going Underground

23,861 Aufrufe • vor 2 Monaten

China is not what you think it is. China was created by America. In 1971 Nixon removed the dollar from the gold standard. The dollar was now worth nothing. So he needed to create demand for it. Two new hallucinations. The petrodollar — oil only sold in US dollars. And China — the world's factory, paid in US dollars. China didn't rise because of communism. China didn't rise because of hard work. China rose because America needed somewhere to park its dollars. China is a hallucination of a hallucination. And here is the problem with that. If the original hallucination becomes unstable — China becomes twice as unstable. Because it has nothing real to stand on. That is why China and America will always need each other. The dream only works if both keep dreaming it.

China is not what you think it is. China was created by America. In 1971 Nixon removed the dollar from the gold standard. The dollar was now worth nothing. So he needed to create demand for it. Two new hallucinations. The petrodollar — oil only sold in US dollars. And China — the world's factory, paid in US dollars. China didn't rise because of communism. China didn't rise because of hard work. China rose because America needed somewhere to park its dollars. China is a hallucination of a hallucination. And here is the problem with that. If the original hallucination becomes unstable — China becomes twice as unstable. Because it has nothing real to stand on. That is why China and America will always need each other. The dream only works if both keep dreaming it.

Predictive History

24,240 Aufrufe • vor 4 Monaten

The dollar is the reserve currency NOT because of the Petrodollar - that was absolute nonsense. It is because of capital flows and the depth of US financial markets. Weaponize it and you destroy the very foundation it depends on.

The dollar is the reserve currency NOT because of the Petrodollar - that was absolute nonsense. It is because of capital flows and the depth of US financial markets. Weaponize it and you destroy the very foundation it depends on.

Martin A. Armstrong

90,763 Aufrufe • vor 5 Monaten

Stablecoin competition is heating up, but the market does not need hundreds of isolated digital dollars. It needs shared liquidity between regulated dollars. As banks, fintechs, payment companies, and platforms explore issuance, the real question is not who can launch another token. It is whether those dollars can move, settle, and redeem through a common framework. That is the role Metal Dollar was built to play. XMD is not just another dollar. It is designed to be a liquidity layer for institution-issued digital dollars.

Stablecoin competition is heating up, but the market does not need hundreds of isolated digital dollars. It needs shared liquidity between regulated dollars. As banks, fintechs, payment companies, and platforms explore issuance, the real question is not who can launch another token. It is whether those dollars can move, settle, and redeem through a common framework. That is the role Metal Dollar was built to play. XMD is not just another dollar. It is designed to be a liquidity layer for institution-issued digital dollars.

Metal Dollar

17,442 Aufrufe • vor 2 Monaten

When people talk about the dollar, they mean DXY. The main index everyone follows. But you should never follow just one. DXY is useful, and it correlates strongly with the big mechanical flows. That is how powerful these relationships are. It is also limited. The problem is it is heavily weighted to the euro. So if the euro moves a lot, DXY can make the dollar look dramatic even when the real picture is more complicated. Sometimes DXY looks calm while emerging market currencies are under heavy pressure. Sometimes the euro masks stress somewhere else. Sometimes the dollar is rising hard against Asian currencies before the index even catches up. To actually read dollar conditions, you look across currencies. You watch reserve sales, FX interventions, repo markets, and cross-currency basis swaps. You watch Treasury collateral and volatility. The dollar's exchange value is not a clean number. It is a symptom of global balance sheet dynamics. That said, DXY does line up with one thing. Foreign governments selling their reserves. When officials overseas dump their Treasury holdings, it is not because they hate America or are fleeing the dollar for the next scheme the doomers are selling. They are doing it because dollars are getting harder to find. The big Eurodollar bank dealers are pulling back their balance sheets, and dollars are drying up. Think of Treasuries as bottled water. The storm is coming, the water is getting expensive, so foreign authorities reach into their stockpile. But to use it, they have to sell it. And when they sell, watch what even imperfect DXY does. It goes up. So there it is. A dollar shortage forces reserve sales, and reserve sales push the dollar's value higher. A rising dollar is not strength. It is the shortage showing up in the one number everyone watches.

When people talk about the dollar, they mean DXY. The main index everyone follows. But you should never follow just one. DXY is useful, and it correlates strongly with the big mechanical flows. That is how powerful these relationships are. It is also limited. The problem is it is heavily weighted to the euro. So if the euro moves a lot, DXY can make the dollar look dramatic even when the real picture is more complicated. Sometimes DXY looks calm while emerging market currencies are under heavy pressure. Sometimes the euro masks stress somewhere else. Sometimes the dollar is rising hard against Asian currencies before the index even catches up. To actually read dollar conditions, you look across currencies. You watch reserve sales, FX interventions, repo markets, and cross-currency basis swaps. You watch Treasury collateral and volatility. The dollar's exchange value is not a clean number. It is a symptom of global balance sheet dynamics. That said, DXY does line up with one thing. Foreign governments selling their reserves. When officials overseas dump their Treasury holdings, it is not because they hate America or are fleeing the dollar for the next scheme the doomers are selling. They are doing it because dollars are getting harder to find. The big Eurodollar bank dealers are pulling back their balance sheets, and dollars are drying up. Think of Treasuries as bottled water. The storm is coming, the water is getting expensive, so foreign authorities reach into their stockpile. But to use it, they have to sell it. And when they sell, watch what even imperfect DXY does. It goes up. So there it is. A dollar shortage forces reserve sales, and reserve sales push the dollar's value higher. A rising dollar is not strength. It is the shortage showing up in the one number everyone watches.

Jeffrey P. Snider

13,192 Aufrufe • vor 3 Monaten

Alex Krainer (Alex (Sasha) Krainer) identifies the single remaining mechanism that still holds the Western empire together. While debts explode and European banks sit on even thinner ice than American ones, the only glue left is the petrodollar. Russia and China understand this. Iran is now in a position to strike it directly. “The only way this whole empire is being held together, the only glue that holds it together is in fact the petrodollar. And I think that this is very obvious to the Russians and to the Chinese. And so I think that destroying the petrodollar has to be an important objective in the resistance against the empire. Now, I don’t think that the Russians or the Chinese are inclined to make very aggressive moves to deliberately crash the petrodollar because they don’t have to. It’s going to implode anyway. It’s important to understand for our viewers that most of the US dollars in circulation today, an estimated 60%, circulate outside of the United States. So it’s not just a US American financial problem; it’s the whole world. And so many countries hold their reserve assets in US dollars. Many countries have their pension funds invested in US dollar assets. So a collapse of the petrodollar and the US dollar could end up being the same event. I don’t know that the Trump administration is going to manage to insulate their domestic dollar against the dollar circulating outside of the United States. And there’s something between 20 and 30 trillion dollars of US-denominated assets owned by foreigners. And so destabilizing the dollar deliberately would risk consequences that would be detrimental to many nations around the world. It will exacerbate food price inflation, which would be very devastating to many ‘Global South’ countries. So it’s important to build alternatives to give countries time to prepare for the adjustment and to let the dollar unravel under its own momentum. But Iran has a different incentive in this whole thing. And I think the Iranians are now perfectly in position to strike at the petrodollar by conditioning passage through the Strait of Hormuz: the ship can pass if the cargo was paid in Chinese yuan or Russian rubles or Indian rupee or whatever it be and not in US dollars. So that’s already exacerbating the pressure on the US dollar, and the Chinese and the Russians don’t have to take any aggressive active measures against that.” The petrodollar is the last structural support. Once it goes, the rest of the system follows.

Alex Krainer (Alex (Sasha) Krainer) identifies the single remaining mechanism that still holds the Western empire together. While debts explode and European banks sit on even thinner ice than American ones, the only glue left is the petrodollar. Russia and China understand this. Iran is now in a position to strike it directly. “The only way this whole empire is being held together, the only glue that holds it together is in fact the petrodollar. And I think that this is very obvious to the Russians and to the Chinese. And so I think that destroying the petrodollar has to be an important objective in the resistance against the empire. Now, I don’t think that the Russians or the Chinese are inclined to make very aggressive moves to deliberately crash the petrodollar because they don’t have to. It’s going to implode anyway. It’s important to understand for our viewers that most of the US dollars in circulation today, an estimated 60%, circulate outside of the United States. So it’s not just a US American financial problem; it’s the whole world. And so many countries hold their reserve assets in US dollars. Many countries have their pension funds invested in US dollar assets. So a collapse of the petrodollar and the US dollar could end up being the same event. I don’t know that the Trump administration is going to manage to insulate their domestic dollar against the dollar circulating outside of the United States. And there’s something between 20 and 30 trillion dollars of US-denominated assets owned by foreigners. And so destabilizing the dollar deliberately would risk consequences that would be detrimental to many nations around the world. It will exacerbate food price inflation, which would be very devastating to many ‘Global South’ countries. So it’s important to build alternatives to give countries time to prepare for the adjustment and to let the dollar unravel under its own momentum. But Iran has a different incentive in this whole thing. And I think the Iranians are now perfectly in position to strike at the petrodollar by conditioning passage through the Strait of Hormuz: the ship can pass if the cargo was paid in Chinese yuan or Russian rubles or Indian rupee or whatever it be and not in US dollars. So that’s already exacerbating the pressure on the US dollar, and the Chinese and the Russians don’t have to take any aggressive active measures against that.” The petrodollar is the last structural support. Once it goes, the rest of the system follows.

🅰pocalypsis 🅰pocalypseos 🇷🇺 🇨🇳 🅉

19,563 Aufrufe • vor 1 Monat

Peter Schiff, who gained fame for accurately predicting the 2008 financial crisis: The world is now pulling the rug out from under the US. The dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold… they’re getting rid of dollars. We are headed for an economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic. This one is not a global financial crisis — it’s an American financial crisis. The rest of the world is actually going to benefit. The bubble is in the dollar. The bubble is in the US economy.

Peter Schiff, who gained fame for accurately predicting the 2008 financial crisis: The world is now pulling the rug out from under the US. The dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold… they’re getting rid of dollars. We are headed for an economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic. This one is not a global financial crisis — it’s an American financial crisis. The rest of the world is actually going to benefit. The bubble is in the dollar. The bubble is in the US economy.

Clash Report

2,101,753 Aufrufe • vor 7 Monaten

"The cedi's appreciation against the dollar is temporary, and it is not due to any economic gurus in Ghana. Rather, it is because the global market is not demanding the dollar as it used to. These are basic economic principles." — Hon. Kennedy Agyapong

"The cedi's appreciation against the dollar is temporary, and it is not due to any economic gurus in Ghana. Rather, it is because the global market is not demanding the dollar as it used to. These are basic economic principles." — Hon. Kennedy Agyapong

EDHUB🌍ℹ

159,384 Aufrufe • vor 1 Jahr

🇺🇸 The U.S is destroying the dollar, but the terrifying part is the world may have to keep using it anyway. That was the most important insight from my debate with Peter Schiff and George Gammon. Peter's argument is familiar, but powerful: America is running massive deficits. Interest costs are exploding, central banks are buying more gold, and the more Washington weaponizes the dollar through sanctions, the more incentive the rest of the world has to find an alternative. Eventually, Peter believes the dollar's loss of purchasing power accelerates so violently that confidence breaks, and its reserve status goes with it. George's response is much more counterintuitive. The dollar isn't just a currency; it's a global network of debt. Trillions upon trillions of dollars are lent into existence around the world, and every dollar-denominated loan creates something extremely important: Future demand for dollars, because eventually that debt has to be serviced or repaid. So here's the paradox. The dollar can fall against gold, it can lose purchasing power, it can even become a terrible long-term store of value. And yet global corporations, banks and financial institutions will still keep using it because the network around it remains deeper, more liquid and more useful than anything else available. George Gammon, Peter Schiff

🇺🇸 The U.S is destroying the dollar, but the terrifying part is the world may have to keep using it anyway. That was the most important insight from my debate with Peter Schiff and George Gammon. Peter's argument is familiar, but powerful: America is running massive deficits. Interest costs are exploding, central banks are buying more gold, and the more Washington weaponizes the dollar through sanctions, the more incentive the rest of the world has to find an alternative. Eventually, Peter believes the dollar's loss of purchasing power accelerates so violently that confidence breaks, and its reserve status goes with it. George's response is much more counterintuitive. The dollar isn't just a currency; it's a global network of debt. Trillions upon trillions of dollars are lent into existence around the world, and every dollar-denominated loan creates something extremely important: Future demand for dollars, because eventually that debt has to be serviced or repaid. So here's the paradox. The dollar can fall against gold, it can lose purchasing power, it can even become a terrible long-term store of value. And yet global corporations, banks and financial institutions will still keep using it because the network around it remains deeper, more liquid and more useful than anything else available. George Gammon, Peter Schiff

Mario Nawfal

304,568 Aufrufe • vor 11 Tagen

THE NIGHTMARE SCENARIO NOBODY IS TALKING ABOUT AN OIL + DOLLAR SHORTAGE The nightmare scenario nobody is talking about right now is what happens if the Dollar skyrockets at the same time as oil. Since the world's oil supply is purchased in Dollars, they are typically inversely correlated. A lower Dollar = increased international demand for oil. The only time we've seen a brief period of oil 🔼 Dollar 🔼 was in 2022, during the economic slowdown. The nightmare scenario we're facing is a global oil supply shortage at the same time as an economic crisis. Both of these compound the demand for Dollars because not only are nations forced to liquidate greater assets to purchase oil, but servicing sovereign debt becomes much more expensive because it's denominated in Dollars. This energy crisis could very well be the beginning of Brent Johnson's Santiago Capital Dollar Milkshake Theory and the United States' plan to take a large portion of its debt out of circulation.

THE NIGHTMARE SCENARIO NOBODY IS TALKING ABOUT AN OIL + DOLLAR SHORTAGE The nightmare scenario nobody is talking about right now is what happens if the Dollar skyrockets at the same time as oil. Since the world's oil supply is purchased in Dollars, they are typically inversely correlated. A lower Dollar = increased international demand for oil. The only time we've seen a brief period of oil 🔼 Dollar 🔼 was in 2022, during the economic slowdown. The nightmare scenario we're facing is a global oil supply shortage at the same time as an economic crisis. Both of these compound the demand for Dollars because not only are nations forced to liquidate greater assets to purchase oil, but servicing sovereign debt becomes much more expensive because it's denominated in Dollars. This energy crisis could very well be the beginning of Brent Johnson's Santiago Capital Dollar Milkshake Theory and the United States' plan to take a large portion of its debt out of circulation.

Financelot

2,406,665 Aufrufe • vor 5 Monaten

Everyone thinks the Fed prints endless money. So why does the world keep running short of dollars? Because what the Fed actually creates is not the money the world uses. It creates bank reserves. Those are not real money. They are limited-use tokens that only work inside the interbank system. The dollars that move the world are private bank money, created when commercial banks lend. Ledger entries on JP Morgan, on Deutsche Bank. That is the disconnect. The Fed can flood the system with reserves, but if banks will not lend, no real money reaches the economy. That was the entire 2010s. Everyone saw the reserves and screamed inflation, dollar to zero. The opposite happened, because the banks stayed constrained. So a dollar shortage has almost nothing to do with the Fed. It is about whether banks are willing to move. And right now, they are not.

Everyone thinks the Fed prints endless money. So why does the world keep running short of dollars? Because what the Fed actually creates is not the money the world uses. It creates bank reserves. Those are not real money. They are limited-use tokens that only work inside the interbank system. The dollars that move the world are private bank money, created when commercial banks lend. Ledger entries on JP Morgan, on Deutsche Bank. That is the disconnect. The Fed can flood the system with reserves, but if banks will not lend, no real money reaches the economy. That was the entire 2010s. Everyone saw the reserves and screamed inflation, dollar to zero. The opposite happened, because the banks stayed constrained. So a dollar shortage has almost nothing to do with the Fed. It is about whether banks are willing to move. And right now, they are not.

Jeffrey P. Snider

62,251 Aufrufe • vor 2 Monaten

As #US economic data continues to disappoint, the #dollar and #USstocks weaken while the #RMB strengthens. Zhu Min, former deputy managing director of the International Monetary Fund, told #ChinaPerspectives that the world has witnessed that a dominant dollar is not necessarily a good thing, as US monetary and fiscal policies can significantly impact the dollar's value and capital flows. A balanced force against the dollar is good for the whole world. "RMB will continue to internationalize to serve that role not only for China, but for the whole world."#3rdplenum

As #US economic data continues to disappoint, the #dollar and #USstocks weaken while the #RMB strengthens. Zhu Min, former deputy managing director of the International Monetary Fund, told #ChinaPerspectives that the world has witnessed that a dominant dollar is not necessarily a good thing, as US monetary and fiscal policies can significantly impact the dollar's value and capital flows. A balanced force against the dollar is good for the whole world. "RMB will continue to internationalize to serve that role not only for China, but for the whole world."#3rdplenum

China Daily

18,079 Aufrufe • vor 2 Jahren

THE US DOLLAR IS ABOUT TO CRASH AND THIS IS WHY BERKSHIRE IS MOVING $348 BILLION DOLLARS

THE US DOLLAR IS ABOUT TO CRASH AND THIS IS WHY BERKSHIRE IS MOVING $348 BILLION DOLLARS

Sweep

22,262 Aufrufe • vor 9 Monaten

Former World Bank Director, Erik Bethel, breaks down a US dollar collapse scenario. “How are they buying it? Well they buy it by printing money. The artificial demand for dollars around the world is largely due to the fact that 60% of central banks have the dollar sitting in reserves. If the dollar isn’t there because nobody wants to use the dollar, we’re screwed. All that artificial demand for dollars disappears and we crater. We’re not going to be able to pay Medicare. And we’re adding $1 trillion of debt every hundred days. You know our government is paying more in interest on our debt, like over $1 trillion in interest alone. We’re paying more in interest, just in interest to service the debt than we are paying for the Defense Department. People start losing faith in the dollar. We see huge amounts of inflation, perhaps hyperinflation.”

Former World Bank Director, Erik Bethel, breaks down a US dollar collapse scenario. “How are they buying it? Well they buy it by printing money. The artificial demand for dollars around the world is largely due to the fact that 60% of central banks have the dollar sitting in reserves. If the dollar isn’t there because nobody wants to use the dollar, we’re screwed. All that artificial demand for dollars disappears and we crater. We’re not going to be able to pay Medicare. And we’re adding $1 trillion of debt every hundred days. You know our government is paying more in interest on our debt, like over $1 trillion in interest alone. We’re paying more in interest, just in interest to service the debt than we are paying for the Defense Department. People start losing faith in the dollar. We see huge amounts of inflation, perhaps hyperinflation.”

Shawn Ryan

796,156 Aufrufe • vor 7 Monaten

🚨Peter Schiff: China🇨🇳 is silently dumping the dollar, a US🇺🇸 dollar crisis is coming soon! ‘China is gradually weaning themselves off of the dollar. That’s why, if you look at their holdings of US Treasuries, they’ve actually gone down a bit over the years. If you look at all the new Treasuries we’ve issued over the years, the fact that the Chinese haven’t bought any of them is a big deal because they used to be a main buyer of these assets. Instead of buying more Treasuries, they’ve bought more gold. So if you look at US dollar debt as a percentage of all the reserves the Chinese own, Treasuries are a much smaller percentage of their total reserves than they once were, especially if you consider the appreciation of gold. I would guess the reason they’re not moving more dramatically is because they probably don’t want to cause a crash, the dollar to implode, the Treasury market to implode, because they are trying to sell and want to get a decent price. So I think they’re happy to slowly bleed it off to try to get that good price. They just have to worry about the impact on the dollar, because if they try to dump too many dollars at once, the dollar could go down, and especially if a lot of other countries see that and want to get out. There could be a run on the dollar. If all the holders decide they want to get out, they don’t want to be the last one holding the dollar, and so it becomes a rush, and we could be in a US dollar crisis relatively soon anyway… I think we’re heading for a real crisis in the US, and I think countries that are smart would be trying to get ahead of that by selling whatever they can, as quietly as they can, out of US dollars and any US dollar-denominated debt.’ -Peter Schiff on Going Underground

🚨Peter Schiff: China🇨🇳 is silently dumping the dollar, a US🇺🇸 dollar crisis is coming soon! ‘China is gradually weaning themselves off of the dollar. That’s why, if you look at their holdings of US Treasuries, they’ve actually gone down a bit over the years. If you look at all the new Treasuries we’ve issued over the years, the fact that the Chinese haven’t bought any of them is a big deal because they used to be a main buyer of these assets. Instead of buying more Treasuries, they’ve bought more gold. So if you look at US dollar debt as a percentage of all the reserves the Chinese own, Treasuries are a much smaller percentage of their total reserves than they once were, especially if you consider the appreciation of gold. I would guess the reason they’re not moving more dramatically is because they probably don’t want to cause a crash, the dollar to implode, the Treasury market to implode, because they are trying to sell and want to get a decent price. So I think they’re happy to slowly bleed it off to try to get that good price. They just have to worry about the impact on the dollar, because if they try to dump too many dollars at once, the dollar could go down, and especially if a lot of other countries see that and want to get out. There could be a run on the dollar. If all the holders decide they want to get out, they don’t want to be the last one holding the dollar, and so it becomes a rush, and we could be in a US dollar crisis relatively soon anyway… I think we’re heading for a real crisis in the US, and I think countries that are smart would be trying to get ahead of that by selling whatever they can, as quietly as they can, out of US dollars and any US dollar-denominated debt.’ -Peter Schiff on Going Underground

Afshin Rattansi

107,856 Aufrufe • vor 7 Monaten

This statement by Riad Salame did not get enough attention yesterday, and the interviewer didn’t even realize what was being said. RS is saying that the old dollar deposits in the Lebanese banking system are originally LBP deposits that were converted to USD at some point in the chain. Therefore, the solution for these dollars is “different” than it would be for “fresh” dollar deposits brought in from outside Lebanon. In other words, his solution is that all of the old dollar deposits should be returned to their owners in full but… in their original value of 1500 LBP to USD, and not in real dollars as they weren’t real dollars to begin with. That was BDL’s plan all along. They convinced people over the last 20 years that by converting their deposit to USD in the bank (or accepting others USD deposit for payments etc), they now had dollars and were safe. The objective was to convince people not to convert their LBP into real dollars (eg real dollar bills or transfers outside Lebanon), which would have caused the currency collapse years earlier. So they pulled a psychological trick on them by giving them dollar IOUs that they never intended to honor. Add decades of accrued interest on top of that and the debt became gigantic. It is not practical today to distinguish between the two sources of dollar deposits for the most part.

This statement by Riad Salame did not get enough attention yesterday, and the interviewer didn’t even realize what was being said. RS is saying that the old dollar deposits in the Lebanese banking system are originally LBP deposits that were converted to USD at some point in the chain. Therefore, the solution for these dollars is “different” than it would be for “fresh” dollar deposits brought in from outside Lebanon. In other words, his solution is that all of the old dollar deposits should be returned to their owners in full but… in their original value of 1500 LBP to USD, and not in real dollars as they weren’t real dollars to begin with. That was BDL’s plan all along. They convinced people over the last 20 years that by converting their deposit to USD in the bank (or accepting others USD deposit for payments etc), they now had dollars and were safe. The objective was to convince people not to convert their LBP into real dollars (eg real dollar bills or transfers outside Lebanon), which would have caused the currency collapse years earlier. So they pulled a psychological trick on them by giving them dollar IOUs that they never intended to honor. Add decades of accrued interest on top of that and the debt became gigantic. It is not practical today to distinguish between the two sources of dollar deposits for the most part.

Mike Azar

38,478 Aufrufe • vor 9 Monaten