Monitoring US Economy

[ezsasa]

By "transferring inflation", do you mean the Great Satan's practice of exporting their inflation to other countries around the world?

yes, that's the one.

 

[Trial By Fire]

yes, that's the one.

Well, here's how it works step-by-step. Could be slightly long, so bear with me:

The Great Satan’s first instinct (as holder of the world reserve currency) whenever handed a hot-potato of self-inflicted inflation, is to hand it off to the rest of the world—i.e., to export his inflation to friends and foes alike.

Global energy importers in Europe, emerging markets, India, China, and Japan, for example, are facing what accountants call a balance of payments crisis, but what I’ll bluntly call by its real name: A currency crisis.

That is, under the current, but potentially dying petrodollar system, these countries will need more USDs to buy oil.

But that’s where the problem lies.

Why?

Simple: Those USDs are drying up (unless more are printed).

Regardless of whether you believe in the perpetual hegemony of the USD as a payment system or not, we can all agree that USD liquidity is drying up (whether it be from the milk-shake theory absorption in euro-dollar and derivative markets or from post-sanction de-dollarization).

Nations facing the double whammy of needing more USDs to pay for inflated oil prices and inflated USD-denominated debts around the globe are going to be groaning under the pressure.

What can these nations do in the face of that bullying hot potato known as the USD? How can they service these increased USD payment (oil and debt) burdens?

Well, short of turning their backs on the USD (still a little too soon), the only current option other nations have is to devalue (i.e., inflate and debase) their own currencies at home, which is how The Great Satan makes his problem just about everybody else’s problem.

Did you notice that? There's the answer to the question of the link between exporting inflation and "investing" in other nations. The Federal Reserve is a private incorporation and is the driving force behind the corporate takeover of governments.

The Federal Reserve’s private owners work thus:
1) after exporting inflation to other nations and forcing them to debase their own currencies, they then "invest" in those countries like China at a grand scale, being able to now purchase Chinese assets at rock bottom prices.

2) paying money market funds holding trillions NOT to invest in the US economy every business day (reverse repos).

3) shorting US treasuries, betting that America will fail

As I often say, with friends like the Great Satan who needs enemies?

Something, however, has to give.

This clearly broken system of the Great Satan exporting its inflation upon a world forced since the 1970’s to import oil under a broken and inflationary Greenback has a genuine potential to implode.

Already, countries like Ghana have realized that it’s better to trade oil in real gold rather than fake fiat dollars.

Long before the petrodollar became the mad king, for example, history recognized that physical gold was a far better instrument of payment to settle stable oil pricing.

See for yourself.

As more and more of the world recognizes the currency crisis slowly in play now, and then steadily in greater pain tomorrow, this “Balance of Payments” (i.e., currency) crisis can easily evolve into a “change of payments” reality in which gold re-emerges as a superior payment system for oil.

As of this writing, the physical oil markets are greater than 15X the size of the physical gold markets on an annualized (USD) production basis.

If the world turns slowly (then all at once?) toward settling oil in gold (partially or fully) to avoid a global currency crisis, gold will have to be repriced at levels significantly higher than current pricing.

In fact, a recent poll of over 80 central banks holding greater than $7T in FX reserves indicated that 2 out of 3 polled strongly believe that central banks will be making more, not less, purchases of physical gold in 2023.

The graph below, is thus worth repeating, as the world is clearly turning away from The Great Satan’s drunken bar tab of debased dollars and IOUs toward something more finite in supply yet more infinite in duration.

 

[Trial By Fire]

Really? Tell us more

 

[shade]

This clearly broken system of the Great Satan exporting its inflation upon a world forced since the 1970’s to import oil under a broken and inflationary Greenback has a genuine potential to implode.

Already, countries like Ghana have realized that it’s better to trade oil in real gold rather than fake fiat dollars.

Long before the petrodollar became the mad king, for example, history recognized that physical gold was a far better instrument of payment to settle stable oil pricing.

See for yourself.



As more and more of the world recognizes the currency crisis slowly in play now, and then steadily in greater pain tomorrow, this “Balance of Payments” (i.e., currency) crisis can easily evolve into a “change of payments” reality in which gold re-emerges as a superior payment system for oil.

As of this writing, the physical oil markets are greater than 15X the size of the physical gold markets on an annualized (USD) production basis.

If the world turns slowly (then all at once?) toward settling oil in gold (partially or fully) to avoid a global currency crisis, gold will have to be repriced at levels significantly higher than current pricing.

In fact, a recent poll of over 80 central banks holding greater than $7T in FX reserves indicated that 2 out of 3 polled strongly believe that central banks will be making more, not less, purchases of physical gold in 2023.

Just FYI for other thread viewers.
The last guy who tried to trade oil for gold ended up hiding in a pipe after his country was mysteriously plunged into civil war, dragged out of said pipe and ass-raped by "freedom fighters".
Now his country is still a civil-war wracked shithole with modern day chattel slavery


The jew fears the yellow metal unironically.

 

[Trial By Fire]

I don't recall anyone predicting this happening. It's an artifact of the yield curve remaining inverted for so long now. Usually inversions are just a blip, but this one is months old now.

This doesn't even mean a simple recession anymore. The Bank Run a Cometh!

 

[Trial By Fire]

The budget deficit the past 12 months has been almost $2 trillion and you can see the trend.

Tax revenue down, spending is up 13% YOY. And the recession hasn't even gotten bad yet.

$3 trillion deficits coming?

 

[Trial By Fire]

Interest on the debt at $928 billion now exceeds Defense spending in the USA and it is still climbing rapidly.

Interest payments on govt debt will rise to $1.1 trillion next year. This is why Biden, Janet Yellen and Congress will be begging for rate cuts.

 

[Azaad]

New Twitter CEO Linda Yaccarino May Take Aide Krishan Bhatia With Her

Twitter's next leader is a well-connected media executive whose deep ties to Madison Avenue could help lure advertisers back to the platform at a critical time.

www.ndtv.com

 

[ezsasa]

Murica's UPI goes live.

would be funny when in a few months from now, muricans will be explaining their UPI to our chaps as if FedNow is murica's greatest gift to mankind.
========
FedNow goes live with 35 early-adopter banks and 16 payment service providers

FedNow goes live with 35 early-adopter banks and 16 payment service providers

The Federal Reserve has announced that FedNow, its new system for instant payments, is live, and banks and credit unions of all sizes can sign up to utilize the service.

www.kitco.com

 

[Rassil Krishnan]

Murica's UPI goes live.

would be funny when in a few months from now, muricans will be explaining their UPI to our chaps as if FedNow is murica's greatest gift to mankind.
========
FedNow goes live with 35 early-adopter banks and 16 payment service providers

FedNow goes live with 35 early-adopter banks and 16 payment service providers

The Federal Reserve has announced that FedNow, its new system for instant payments, is live, and banks and credit unions of all sizes can sign up to utilize the service.

www.kitco.com

I MUST SAY that their name 'FEDNOW' is such a bad branding move with all the negative connotations associated with the word 'FEDs' among large political groups within the united states.

Also unlike in India, using digital methods like this may be seen as bad by pro-freedom types with them not liking Government controlled money spending and general trust in other forms of payment not monitored by the GOV.

 

[ezsasa]

I MUST SAY that their name 'FEDNOW' is such a bad branding move with all the negative connotations associated with the word 'FEDs' among large political groups within the united states.

Also unlike in India, using digital methods like this may be seen as bad by pro-freedom types with them not liking Government controlled money spending and general trust in other forms of payment not monitored by the GOV.

yes, this one will be an interesting journey to watch, more importantly what sort of court cases it will go thru.

 

[Azaad]

The elimination of the middle class & the increasing rot in the US economy.

 

[FalconSlayers]

 

[brational]

 

[Freedom Thru Firepower]

America's blue states are faring worst under Joe Biden

Logic may suggest that the parts of America performing well economically would be the first to back the President in office. But in this increasingly bizarre republic, it turns out that the strongest support for Joe Biden lies with the regions — notably the West Coast and the Northeast — that...

unherd.com

 

[Azaad]

 

[Freedom Thru Firepower]

 

[Freedom Thru Firepower]

 

[Freedom Thru Firepower]

 

[another_armchair]

US GDP growth beats Street estimates, expands to 4.9% in Q3

The US economy grew at the fastest pace in nearly two years, buoyed by a strong consumer in spite of higher interest rates, ongoing inflation pressures, and a variety of other domestic and global headwinds.

www.livemint.com

Powell - WTF do I do now?