Global US-Dollar Shortage - Are We Already in a Recession?

China vs USA
I don't know who will win but i know to defend against China, US will maintain higher interest rates for a sustained period of time. To whack US, China got to offload their US dollars holdings, which they desperately need. Catch-22

 
the prolonged invert curve is to punish those holding the long-term>10 yrs treasury note/bond. A few of the beekok banks already bankrupted holding these note/bond as they lost when liquidating them. When the interest rate rises, the majority of the US$$$ will be sucked back to US banks earning the high interest rate leaving other areas short of the US$$$
thus countries, banks, corporates, and businesses can withstand these short will survive else will be in trouble, a big example is just looking at the current state of tiongkok
 
SOS said:

China central bank unexpectedly cuts rates to support sputtering economy​

https://www.reuters.com/world/china...-time-three-months-support-economy-2023-08-15

SHANGHAI/SINGAPORE, Aug 15 (Reuters) - China's central bank unexpectedly cut key policy rates for the second time in three months on Tuesday, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery.
Click to expand...
China Central Bank just start to sell USD for Yuan last week in London
 
SOS said:

Wall Street Says a Recession Is Coming. Consumers Say It's Already Here​

Shoppers are getting squeezed and money is disappearing fast

https://www.bloomberg.com/news/arti...recession-2022-businesses-and-workers-say-yes

Deutsche Bank AG Chief Executive Christian Sewing sees a 50% chance of a global recession, a prediction that Citigroup Inc. economists have also made. Federal Reserve Chair Jerome Powell says a US recession is a possibility, but not inevitable. Morgan Stanley economists expect a mild euro-area recession at the end of 2022.
Click to expand...
No worries, Everything is still fine in SG as we are in good hands de
 
I know nothing about economics and investing. All I know is that everything operates on a cycle. IMHO, when everyone is gloomy about China, it is time to start investing in China. With a ten-year investing horizon at least, my bet is that the investment will pay off.
 
BRICS is expanding with inclusion of Iran, Saudi, UAE, Ethiopia, Argentina, Egypt

My two cents:
1. Iran + Saudi??? WTF??? Biden must have seriously offended Saudi.
2. Iran, Russia, UAE, Saudi, China, Egypt controls 3/4 of global oil production. This is OPEC-II
3. Most of them are having financial difficulties (South Africa, Russia, Argentina, Ethiopia, Egypt, China), they owe a lot of US-dollar debts.

This alliance is about raping US-dollar, and managing international and oil trades in their local currencies. I don't know if they will succeed, but i know Fed will need to defend. Chances are Jackson Hole will declare the need to maintain high interest rates for an extended period of time.
 
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