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To: Worldtraveler once upon a time

These articles are always economic, trading, and financial IQ tests.

Most fail badly for the following reasons:

1) They have no clue what a “reserve currency” is, why countries hold them, and how they are used.

2) They have have no clue what big money printers the CHICOMS are and WHY China holds 3 trillion dollars of foreign exchange in US dollars and treasures.

3) They have no clue why China needs the yuan to be cheaper than the dollar and if it got significantly stronger that would gut China’s mercantilist export economy.

4) They have no clue that what they call “petro dollars” are only 1% of dollar trading worldwide and so are not significant.

5) They have no clue that things being quoted or priced in US dollars is not the same as payment being required in US dollars.

6) They have no clue that if a country’s currency was tied hard to gold, that would leave the country very vulnerable to exchange rate shock with their trading partners. Gold fell to $750 in 2008, went to $1900 in 20011, back to $1100 in 2016...

7) and many more...


46 posted on 05/22/2022 5:41:34 AM PDT by BiglyCommentary
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To: BiglyCommentary
--- "These articles are always economic, trading, and financial IQ tests."

Your list is sound. The scent of marketing lingers in the air, as chitter chat about currency, reserves and more is splattered across the media. The large issue as I see it is debt. Debt, whether denominated in dollars. Euros, rubles or gold is still debt.

Given the lunacy of the American Congress and the Fed, and similar lunacy of the European Central Bank and others, debt sucks the life out of tomorrow.

Between energy policies and debt foolishness, things coming will be precipitated out of today. The best answer? Have no debt and own real property of some sort.

59 posted on 05/23/2022 6:12:39 AM PDT by Worldtraveler once upon a time
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