Re: Financial topics
Posted: Fri Mar 20, 2020 9:14 pm
So hyperinflation seems to start when people dump bonds and the central bank has to buy as the government has a huge deficit and needs to be able to sell bonds to keep in operation. So the first clue is when people leave bonds. It just takes something to start it and then a positive feedback loop takes over.
Russia and Saudi Arabia plan to sell off their bond reserves (mostly US bonds) to cover their shortfall while oil prices are down. So they can dump US bonds and it looks like it is just because of an oil price war and not a deliberate bond dump.
They may realize the dollar's days are numbered and that they can light the match and start the death of the dollar.
The US has put sanctions on Russia for helping Venezuela sell oil. Putin might have figured out how to end the US dollar reserve currency status and decided to do so. In general I think the US has tried too hard to control too many other countries and so is probably headed to lose the reserve currency status anyway (they use the dollar banking system to put pressure on all kinds of countries so people have been working to avoid the dollar).
https://www.aljazeera.com/news/2020/02/ ... 02335.html
Russia and Saudi Arabia plan to sell off their bond reserves (mostly US bonds) to cover their shortfall while oil prices are down. So they can dump US bonds and it looks like it is just because of an oil price war and not a deliberate bond dump.
They may realize the dollar's days are numbered and that they can light the match and start the death of the dollar.
The US has put sanctions on Russia for helping Venezuela sell oil. Putin might have figured out how to end the US dollar reserve currency status and decided to do so. In general I think the US has tried too hard to control too many other countries and so is probably headed to lose the reserve currency status anyway (they use the dollar banking system to put pressure on all kinds of countries so people have been working to avoid the dollar).
https://www.aljazeera.com/news/2020/02/ ... 02335.html