Quote:
Originally Posted by ramonesfreak
i’ll admit i read the other thread and now this and i have no idea what you are talking about. i just dont understand it
so, could you do an idiot like me a favor and explain what it will look like when the dominoes start falling?
how will all this stuff your talking about manifest itself in real life? can you give examples so i can keep an eye out for that rather than having to go back to college to learn economics?
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Read Aksoy & pishovski..."foreign holders of usd and the informational value of monetary aggregates."
Simply put there are tons of usd hiding in mattresses overseas..everybody has em..
If they all start coming our of hiding due to an adverse shift in perception and sentiment well welcome to united states of Zimbabwe.
So we know the FED printed em...we know they were in mattresses..but now they seem to be surfacing and beginning to flood the usa. In march 2020 an about face or adverse shift in the safe haven status of the usd took place. As Druckenmiller says money did not flow into.Treasuries in a crisis but out of them. The Chinese decided to reduce their us Treasuey portfolio by 200b over a period of time. There is a shift away from holding usd..seeking alternatives..so the queztion is from what mattress are these 755b coming from? A tsunami of them will wipe the usd and usa right off the
Problem right now is that there is no scaleable alternative to the usd that has cred. The world for the moment is stuck wid em. The FED is planning on introducing a crypto FED usd. It is all an effort from keeping the global economy from crashing..
The key word here is DESPERATION.
Why would the FED throw caution to the wind when tjey knew that their action was totally detrimental to the health pf the system. They had to or else.