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All hail the buck!


spygirl

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https://www.nytimes.com/2019/02/22/business/dollar-currency-value.html?action=click&module=Well&pgtype=Homepage&section=Business

The most formidable competitor to the dollar has long been the euro. In September, the president of the European Commission, Jean-Claude Juncker, devoted part his final State of the Union address to lamenting that the bloc was paying for 80 percent of its energy imports in dollars, though just 2 percent came from the United States.

“We will have to change that,” Mr. Juncker declared. “The euro must become the active instrument of a new sovereign Europe.”

But the most trusted euro-denominated investment, German government bonds, are in chronically short supply. With a deep cultural aversion to debt, Germany has been reluctant to finance spending by selling bonds. As a result, investors seeking ultrasafe places to stash savings have very few options in the euro currency. By comparison, American savings bonds are in virtually limitless supply.

You want an international currency? Then you need to trade and be prepared to print.

Euro was pretty pisspoor before. Even worse now as all bar germany are in shit. And germany does not want to run a deficit / print.

 

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43 minutes ago, spygirl said:

https://www.nytimes.com/2019/02/22/business/dollar-currency-value.html?action=click&module=Well&pgtype=Homepage&section=Business

The most formidable competitor to the dollar has long been the euro. In September, the president of the European Commission, Jean-Claude Juncker, devoted part his final State of the Union address to lamenting that the bloc was paying for 80 percent of its energy imports in dollars, though just 2 percent came from the United States.

“We will have to change that,” Mr. Juncker declared. “The euro must become the active instrument of a new sovereign Europe.”

But the most trusted euro-denominated investment, German government bonds, are in chronically short supply. With a deep cultural aversion to debt, Germany has been reluctant to finance spending by selling bonds. As a result, investors seeking ultrasafe places to stash savings have very few options in the euro currency. By comparison, American savings bonds are in virtually limitless supply.

You want an international currency? Then you need to trade and be prepared to print.

Euro was pretty pisspoor before. Even worse now as all bar germany are in shit. And germany does not want to run a deficit / print.

 

Clearly Juncker is a dead man walking.

Saddam wanted to trade Iraqi oil in currency other than dollars and look what happened to him

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1 hour ago, spygirl said:

https://www.nytimes.com/2019/02/22/business/dollar-currency-value.html?action=click&module=Well&pgtype=Homepage&section=Business

The most formidable competitor to the dollar has long been the euro. In September, the president of the European Commission, Jean-Claude Juncker, devoted part his final State of the Union address to lamenting that the bloc was paying for 80 percent of its energy imports in dollars, though just 2 percent came from the United States.

“We will have to change that,” Mr. Juncker declared. “The euro must become the active instrument of a new sovereign Europe.”

But the most trusted euro-denominated investment, German government bonds, are in chronically short supply. With a deep cultural aversion to debt, Germany has been reluctant to finance spending by selling bonds. As a result, investors seeking ultrasafe places to stash savings have very few options in the euro currency. By comparison, American savings bonds are in virtually limitless supply.

You want an international currency? Then you need to trade and be prepared to print.

Euro was pretty pisspoor before. Even worse now as all bar germany are in shit. And germany does not want to run a deficit / print.

 

I think we reached peak Euro jsut before Greece went pop.It's downhill from here.

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On 22/02/2019 at 22:09, Agent ZigZag said:

Sixth form common room debater is what his ilk are., They are the new soverign aristocracy of our age or so they think. All will change

Exactly.  

He doesn't seem to understand that it makes no difference whether the oil buyer exchanges euros for dollars before the transaction, or the oil producer exchanges them for dollars after the transaction. Either way, the oil producer will end up with the currency of their choice, most likely dollars, and the euro will be depressed in the market.

It might have made a small difference decades ago but theses days, with our globalised economy, multiple high-volume producers and consumers, plus uber-liquid currency markets and hedging products, the whole notion of petrodollars is meaningless.

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9 hours ago, MvR said:

Exactly.  

He doesn't seem to understand that it makes no difference whether the oil buyer exchanges euros for dollars before the transaction, or the oil producer exchanges them for dollars after the transaction. Either way, the oil producer will end up with the currency of their choice, most likely dollars, and the euro will be depressed in the market.

It might have made a small difference decades ago but theses days, with our globalised economy, multiple high-volume producers and consumers, plus uber-liquid currency markets and hedging products, the whole notion of petrodollars is meaningless.

Currency mrkets are lqiuuids, the laws on trading with a currency i..e using the host countries bank are not.

The US have really stepped up their attitude on going after nasty people/countries using the dollar.

The Euro/Euope has been given  a massive, huge open goal - there's lots of countries that are a bit errr dodgy who are deperate for a non dollar currency to trade with. As it stands ive heard of billion dollar couhg deals where oil or whtaer is barted between 2 or more counter parties - Countr y x buys oil, sells something to countr B, who sells another thing to Oil country.

The fall out from 2007 and all that is having huge ramifications downthe line. Pople see it as one criisis, rather it was multiple interconnected crisisis.

Foer the UK, it was a massive bank credit boom attached to housing. So big that, unlike the 90s, the crisis took the banks rather than borrowers out. Of course the housing market will be hit. It has been massively in number of trasnations have collapsed. This will show up in prices soon.

IN europe was the entire banking system and country debt markets and entire Euro project that took a hit. Forget brext. Most large european banks are refusing to trade with other european countries. In fact, if it was not the UK there would be limited intra european finance. No, thers no sign of dublin or germany taking over.

 

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US manages to sqaure the circle - it runs a huge fucking surplus, printing dollars by the tankerload, yet is still trusted by the rest of the world.

Euro? All the countries in the Euro dont fuckign trsut each other. Germany doesnt trust the latins, the latins hate the fucking germans, the smaller, better run counntries - Nland, Swden Finland, are pissed off with everyone else.

And everyone thinks the French are cunts.

 

 

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3 hours ago, spygirl said:

Currency mrkets are lqiuuids, the laws on trading with a currency i..e using the host countries bank are not.

The US have really stepped up their attitude on going after nasty people/countries using the dollar.

The Euro/Euope has been given  a massive, huge open goal - there's lots of countries that are a bit errr dodgy who are deperate for a non dollar currency to trade with. As it stands ive heard of billion dollar couhg deals where oil or whtaer is barted between 2 or more counter parties - Countr y x buys oil, sells something to countr B, who sells another thing to Oil country.

The fall out from 2007 and all that is having huge ramifications downthe line. Pople see it as one criisis, rather it was multiple interconnected crisisis.

Foer the UK, it was a massive bank credit boom attached to housing. So big that, unlike the 90s, the crisis took the banks rather than borrowers out. Of course the housing market will be hit. It has been massively in number of trasnations have collapsed. This will show up in prices soon.

IN europe was the entire banking system and country debt markets and entire Euro project that took a hit. Forget brext. Most large european banks are refusing to trade with other european countries. In fact, if it was not the UK there would be limited intra european finance. No, thers no sign of dublin or germany taking over.

 

Very interesting, thanks. That's an angle I hadn't taken into account.  I'm doing a bit of reading up now.  

https://www.gtreview.com/news/global/us-sanctions-drive-revolt-against-the-dollar-in-trade/

https://www.ft.com/content/4f599984-14da-11e9-a581-4ff78404524e

Amongst other things,  can see how all this adds rocket fuel to a potential precious metals boom. 

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