The Big Mistake of Markets for Central Banks

Six months ago, the world’s major central banks were preparing for a move that would reward anyone with a credit card or hoping to buy a home or run a business: A global shift to lower interest rates that would make borrowing cheaper and loans more available. Interest rate cuts are “a topic of discussion …

Currency War – The Implicit Replacement of the Petro-Dollar

The dollar as the currency of valuation for oil silently died last week, ushering in a new era in the global monetary status quo. On June 9, the US agreement with Saudi Arabia expired – What will be the consequences. Although it did not grab the headlines of the economic press, for obvious reasons the …

Gold Overtakes Euro as Reserve – Next Currency is the Dollar

There has been a large increase in the share of gold in central bank purchases since 2009 at the expense of fiat currencies. In fact, by the end of 2023, gold has overtaken the euro, while the next currency to challenge is the US dollar. The dollar’s share of total reserves appears to be slowly …

De-dollarization is constantly being strengthened

The dollar is still a primary currency for spending, liquidity and foreign exchange. But it’s no longer the top savings asset. Gold (now a Tier-1 asset…) will continue to be a high-value reserve (ie, it holds its wealth) better than any amount of money. In any case, the dollar and US Treasuries are now quantitatively …

Central banks are creating poverty with real estate, stock and over-indebtedness ‘bubbles’

Due to loose monetary policy (quantitative easing), financial assets appreciate without being supported by proper fundamentals while real estate becomes investment vehicles and the lower income strata are excluded from ownership. Despite what the conventional narrative about the economy holds, central bank monetary policies are a form of distortive government intervention in the economy. Their …

At extreme levels of market valuations (bubbles), everything portends a crash

Lately there has been growing concern over the valuation of the US stock market, warning that it is currently overvalued. This analysis delves into the reasons behind this rating and explores the various factors that contribute to the perceived overvaluation. By trying to understand the basics of what “overvalued” means, we shed light on the …

“Mesoeconomics” or the study of the “middle” space between micro- and macroeconomics

Understanding the network helps to understand the economy. Supply chains have always been seamless and therefore “boring”. Now, however, geopolitical, environmental, social and political upheavals are bringing supply chains to the fore. A consequence of this is the emergence of what is called “mesoeconomics”, or the study of the “middle” space between micro- and macro-economics, …

China cancels US tariffs by devaluing the yuan

China is actively promoting its plan for de-dollarization, promoting the yuan as the dominant currency in world trade, effectively challenging the long-standing dominance of the US dollar. China is trying to promote the yuan as a medium of international trade, implementing the basic principle of de-dollarization – reducing dependence on the dollar. China once relied …

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