freddms on Nostr: My opinion is the best marker to watch is the currency trade. Watch the Japan Yen to ...
My opinion is the best marker to watch is the currency trade. Watch the Japan Yen to US$. Actually any G7 country currency to US$, but Japan holds about a trillion in treasury bonds - which will start to get sold at some point.
Third world currencies are already crashing and burning against #Bitcoin and the US$. The US$ being the Global Reserve Currency will likely be the safe haven (least dirty shirt in a basket of dirty shirts) for a while (until Western civilization wakes up and drives the price of Bitcoin and Gold 10X+). This assumes the US$ maintains it's dominance - which it likely will.
Here is what's happening to the developing world (see charts below) - Powell/Yellen are crushing to these people - and why you see Bitcoin in the 3rd world gaining traction.
But the Yen is the key. Last week was a very bad week for the Yen. BOJ intervened big time - twice. Great little/short write up.
https://www.ctol.digital/news/bank-of-japan-boosts-yen-with-60-billion-intervention/But the real problem is the Carry Trade - it can NOT end or the US$ is in big trouble (borrow in low interest rate currency and buy the higher interest rate currency - China/Japan buying US debt and assets). This keeps asset prices high in the USA.
As asset prices sky rocket, large companies and asset owners in the USA get VERY rich. The working class gets robbed (wage earners).
A great book on this is called, "The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis" by Tim Lee. All the consequences, that are playing out exactly as expected, are explained. It's not an easy read, but it's readable.
When will it all end (and it will)? It's like telling a gambler they have to quit gambling. They keep going until they run out of everyone else's money (can't borrow anymore). No one knows but when it happens, it happens quick. The longer this goes, the bigger the crash (because the ONLY way to keep it going is to keep expanding the bubble).
Published at
2024-05-06 11:34:42Event JSON
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"content": "My opinion is the best marker to watch is the currency trade. Watch the Japan Yen to US$. Actually any G7 country currency to US$, but Japan holds about a trillion in treasury bonds - which will start to get sold at some point.\n\nThird world currencies are already crashing and burning against #Bitcoin and the US$. The US$ being the Global Reserve Currency will likely be the safe haven (least dirty shirt in a basket of dirty shirts) for a while (until Western civilization wakes up and drives the price of Bitcoin and Gold 10X+). This assumes the US$ maintains it's dominance - which it likely will.\n\nHere is what's happening to the developing world (see charts below) - Powell/Yellen are crushing to these people - and why you see Bitcoin in the 3rd world gaining traction. https://m.primal.net/IDot.jpg \n\nBut the Yen is the key. Last week was a very bad week for the Yen. BOJ intervened big time - twice. Great little/short write up. https://www.ctol.digital/news/bank-of-japan-boosts-yen-with-60-billion-intervention/\n\nBut the real problem is the Carry Trade - it can NOT end or the US$ is in big trouble (borrow in low interest rate currency and buy the higher interest rate currency - China/Japan buying US debt and assets). This keeps asset prices high in the USA.\n\nAs asset prices sky rocket, large companies and asset owners in the USA get VERY rich. The working class gets robbed (wage earners).\n\nA great book on this is called, \"The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis\" by Tim Lee. All the consequences, that are playing out exactly as expected, are explained. It's not an easy read, but it's readable.\n\nWhen will it all end (and it will)? It's like telling a gambler they have to quit gambling. They keep going until they run out of everyone else's money (can't borrow anymore). No one knows but when it happens, it happens quick. The longer this goes, the bigger the crash (because the ONLY way to keep it going is to keep expanding the bubble).",
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