This is the real problem guys, USD and Crude are just moving up together and we have lost the non-correlation. As crude is paid in USD, weaker currencies/countries are just getting hammered
@MenthorQpro
Imagine what inflation would be if the USD wasn't strong? I beleive the USD is in a blow-off stage and we have the most incompetence at the highest levels or our Govt. In 2002 when the USD did break its uptrend, there was a massive decline as foreign investors repatriated funds.
@MenthorQpro
As a Canadian, I remember when crude mooned and the CDN dollar was higher than USD.
... That isn't happening this time...
... Even though out central bank is hiking...
Something is seriously wrong when a Petro dollar isn't going up with petrol.
@MenthorQpro
which is exactly why many EMs could soon face not only a food crisis but also a debt crisis, if they don’t be able to pay back the dollar denominated debt.
@MenthorQpro
Higher crude and USD also no bueno for JPY. Yen will be destroyed come winter if this continues. We import nearly 80% of our oil. We consume the most during winter. Buckle up bitches!! Banzai!!
@MenthorQpro
in theory, shouldn't USD go down with inflation? How does a strong dollar (getting "stronger" every day) work in an inflationary environment?
@jordanwest007
@madmax23312660
@MenthorQpro
Selling RUB to a foreign currency has been banned? Where did you get that from? Banks are still working and you can still buy and sell currencies both ways in Russia
@MenthorQpro
almost
most countries are using fx reserves to cushion
and not every country is america.
india trades freely with rus, they dont give 1 f about sanctions.
same in se asia.
if admin applies secondary sanctions the game changes again bigly.