A New Commodity Bull Market Must Come With a Weak US Dollar
These trade deficits are self-reinforcing rather than planned. It’s not like the global reserve country necessarily decides to have persistent trade deficits. Using the United States as an example, if the whole world agrees or is forced to mainly use dollars to buy commodities and settle the majority of international deals, then there is naturally
... See moreLyn Alden • The Global Dollar Short Squeeze
In recent decades, the S&P 500 now receives over 40% of its revenue from international sources, and a stronger dollar means that when those foreign revenues are translated back into dollars, it comes out to a lower number of dollars. The percentage of S&P 500 sales from foreign sources peaked in 2014 and has been on a mild downtrend, coinci
... See moreLyn Alden • The Global Dollar Short Squeeze
Reserve currency status commands many benefits to the holder, which is why it is the ultimate prize of the international system, and the most exalted status within it. In modern times, it allows the issuer of the reserve currency to extract tribute from those subservient without having to use overt force.
Dan • Tech Dollar 2: The War of the Worlds and Fate of the Dollar
A different version of dollar collapse, described by analyst and trader Jim Rickards in his book, Currency Wars, comes complete with deliberately wicked foreigners.
Michael Green • In Gold We Trust? The Future of Money in an Age of Uncertainty (Kindle Single)
What could change things? As other economies grow and become more open, they may be both willing and able to take on the role of a reserve currency. China obviously comes to mind here. Change could also come about if the world comes to have concerns over the health or management of the U.S. economy. The large and growing pool of U.S. debt, now abov
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