Loading ...there’s massive demand for gold and silver…so the price goes down.
-the economy of the working man in the USA is in shambles…so Wollie’s Bull market presses on.
-the good ol’ USA continues to fight unwinable wars around the world, nonstop, run trillion dollar deficits, have record amounts of people on foodstamps and welfare…. and the dollar will be strong for years…
Why the Dollar May Remain Strong For Longer Than We Think-Charles Evans Hughes
For those understandably disgusted by the reckless expansion of the US money supply over the past six years, it’s vitally important to remember that the road to our monetary endgame is not a straight line, nor necessarily intuitive.
For those understandably disgusted by the reckless expansion of the US money supply over the past six years, it’s vitally important to remember that the road to our monetary endgame is not a straight line, nor necessarily intuitive.
I have long been a dollar bull, not for any over-arching reasons based on inflation, deflation, rising geopolitical multi-polarity or any of the other issues that touch on the dollar’s valuation vis-à-vis other currencies. My analysis focuses on a few basics: the dollar’s status as the global reserve currency, Triffin’s Paradox (a.k.a. Triffin’s Dilemma) and global capital flows into the dollar and dollar-denominated assets such as U.S. Treasury bonds.
When we say the U.S. dollar is the global reserve currency, what does that mean? There is often some confusion about the difference between a trading currency and a reserve currency. Let’s use an example to explain the difference.
Country A trades $10 billion of goods and services with Country B, which does $10.01 billion of trade with Country A. The two nations agree to a trade pact that enables the two nations to trade currencies directly, that is, without converting the payments for trade into a third currency such as the dollar.