Guddu wrote:Chinese funding worldwide
https://www.lynalden.com/wp-content/upl ... -loans.jpg
The article in which this pic appears, is worth 1000x more than the pic. Good old topics of Bretton Woods, Petro Dollar, Rise of China etc..but worth a read. I'll post it in the econ thread as well.
The Fraying of the US Global Currency Reserve System
Since autumn of 2019, I’ve been bearish on the dollar, meaning I have a longish-term outlook towards a weaker dollar.
This view began forming when the Federal Reserve cut interest rates in summer 2019, and then the view solidified with a catalyst after an overnight repo rate spike in September 2019 forced the Fed to begin supplying repo liquidity.
In my October 2, 2019 article, “The Most Crowded Trade“, I said to look for a weaker dollar in 2020, and also stated that the Fed would likely start expanding its balance sheet by buying Treasuries in 2020 or perhaps as early as that quarter in 2019 due to oversupply.
Days later, the Fed indeed announced that they will begin buying Treasuries, and as of this writing well over a year later, they haven’t stopped.
The Structure of the Global Monetary System
* Gold Standard Pre-1944
* Bretton Woods System 1944-1971
* Petrodollar System 1974-Present
The Great Petrodollar Bull/Bear Cycle
* Causes for the Cycle
* 1980s Dollar Cycle
* 1990s/2000s Dollar Cycle
* 2010s/2020s Dollar Cycle
The Fraying of the Petrodollar System
* A System Without a Purpose
* Shrinking US Share of Global GDP
* Multi-Currency International Trade
* China Subverting the System
* Eating Our Own Cooking
* Triffin’s Dilemma Unfolds
The Intermediate-Term Outlook
* The Dollar vs Other Currencies
The Long-Term Outlook
* The Slow Restructuring Option
* The Fast Restructuring Option
What the Next System Looks Like
* Decentralized Energy Pricing
* Digital Global Bancor
* Digital Regional Bancors
* Gold as a Reserve Asset
* Bitcoin as a Reserve Asset