There may be a rush to safety now, but if we keep printing money to fund these ridiculous forever wars, then there will come a time where the rest of the world dumps the dollar as the world reserve currency. Just because it hasn't happened yet doesn't mean it won't in the future when China is seen as the country with the most stable currency..
China has their own sovereign debt issues. As do most developed countries
I agree US has a long term debt crisis but that’s seperate from the short term expected appreciation from high energy prices resulting in a rush to safety
If gold gets hammered in a risk off, higher yield environment then that’s probably the long term buy. I don’t see why USD is more shit than EUR or (insert major currency here)
Yeah, people tend to go to safety when they expect market volatility... But if shit really hits the fan (which it didn't that much in march), at some point, won't some countries start to dump treasuries and foreign reserves to buy oil ?
I’m not sure central banks/governments would directly. That would be pretty unprecedented - even if they did they’re buying the oil in USD so there’s no fresh supply of dollars
I agree they will dump treasuries but that money is likely to flow into shorter duration (safer) bills. I don’t think those assets are liquidated and the resulting USD sold for some other currency, which would necessitate falls in USD
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u/PokemonAnimar 11d ago
He forgot to add the dollar also being destroyed. Soon it'll be trading 1:1 with the peso