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The tipping point will see the USA lose its status as the...

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27/09/21

13:55

Post #: 56376047
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Originally posted by Andyrooo: ↑

USA Inflation at 5% (and most know its 10% when you include real estate, energy and food), GDP at 6% and Unemployment at 5%. Why shouldn't the US Fed taper now??? Its statistical madness.

Singapore acknowledged thursday that the pandemic is becoming the endemic.

I'm sure its just coincidence but ... the pandemic began when the World financial markets started signalling stress alerts.

Sep19 was when US Banks signalled they did not trust each other and the Repo market crashed. The US Fed had to step in. A couple of months later the pandemic fills the news.

A bubble in asset prices caused by flooding the financial system with liquidity. MMT once scorned as child's play, now held aloft as the economic Holy Grail. Just add another zero and call it a capital reconstruction.

China now dominate world trade, yet the US$ maintains status as the world reserve currency. Surely a new system of international settlements is in the making? At least the players will be able to blame the great reset of world financial markets on the pandemic ... and not the gross negligence and incompetence of the players themselves.

The USA with an unresolvable debt to GDP ratio of over 130%. Japan at over 200%. Japan has been actively supporting its Equity market for sometime now. It is inevitable that the US Fed will take similar measures in the future.

The US Fed cannot taper Bond purchases. It needs to maintain control. Without the whale purchasing the US Treasuries Bonds, the market will determine real interest rates, given a free market system. US debt is now US$28t and growing. Interest on that at 1.5% is X. Interest on that at 5% is ... well, its enough to print another trill just to maintain control and suppress interest rates.

What is of real value? What is the standard of financial measure? Commodities? Bitcoin?

Bitcoin may have a set limit of supply, however the vast number of supply of Cryptocurrencies over/undermine (pathetic pun intended) it.

Palantir Technologies is a public American software company that specializes in big data analytics. It does a lot of work for US Intelligence organisations. It recently made the News media because it used US$50m in shareholder funds to buy Gold.

You would think Palantir would be big on blockchain technology and in turn cryptocurrencies.

So, Palantir decides to buy Gold. What do they know?

CY22 could be a crunch year, when the Chinese launch their Digital Yuan, the e-RMB in February ... to challenge the US$ for reserve currency status. That should cause some sabre rattling.

I expect the e-RMB to smoke Bitcoin, everywhere but USAMCa and AUKUS. Even criminals on the Dark Web prefer Monero to Bitcoin now. Nations will never allow unregulated de-fi to reach mainstream usage.

Elon Musk had Tesla buy Bitcoin and then announced they would accept Bitcoin. Then China advised Tesla there was a problem with their EVs. Tesla reversed their position on Bitcoin and then the EV problem miraculously went away. Jack Dorsey (with no Chinese connection) now tries to utilise Bitcoin.

Last week China declared other cryptocurrencies illegal. They have been trialling the e-RMB this year. Russia has been trialling the Cryptoruble.

The e-RMB may effectively be just a stablecoin backed by the CNY. However, the CNY is defacto backed by Gold. The Chinese have been mining and buying Gold this century for good reason.

Gold has over 5,000 years of network effect. Most nations in the world are invested in it. Its supply growth is limited (coincidentally) to the growth of the human population.

A Gold based cryptocurrency is most likely. Other precious metals were required during history to handle smaller currency denominations ... but a Gold based cryptocurrency will not require other metals like Silver, Copper and Nickel. They still have vast industrial usages.

The BRICs want to accumulate Gold ... while the AUKUSs want to suppress the POG, so as not to embarrass their currencies.

The tipping point will see the USA lose its status as the world's reserve currency and stimulate the POG. Also reserve currency status gave the USA the power to economically sanction any nation.

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The tipping point will see the USA lose its status as the world's reserve currency and stimulate the POG.
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There's not much point in having a 'stack' then, because that could be hundreds of years away.
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0 Great analysis

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