Reserve, Future of Money Inv4US

By pjain      Published Jan. 10, 2021, 9:43 p.m. in blog Invest   

What CAN YOU do about Massive Printing by All Central Bankers, and USD/Euro Fall

Buy Gold & Silver - ETFs and Physical Bullion, stored safely

Buy Inflation Protected Assets - Other than Real Estate

Buy Your OWN Family Home as Real Estate

Manage Deep Real Estate Debt/Boom/Bust Cycles

Tightly Manage Income Producing Real Estate in Face of Rent Control

  • Don't rent to disabled, HUD, etc. losers
  • Require high security deposits
  • Enforce maintenance, no pets
  • Don't buy in Slums, Drug neighborhoods

Tracking Forex,MktLog

DXY is used to measure dollar strength

This is measured by the DXY index of trade-weighted currencies

2020 Covid USD Weakens on Massive Stimulus, Forever low 0.5% 10yr UST

  • Feds Balance sheet to go to $10T in 6 months
  • USA screwed up virus response (?200,000+ real deaths)
  • Money inflows stopped as Deficits at $2-3T/year
    • Investors expect the Fed to keep interest rates low for long - maybe years
    • USTs @0.5%Money fled dollar-denominated safe havens, such as US government bonds - so rates are low as Fed is buying not real buyers!
    • Real Estate, Company and House foreign buyers - decreased markedly
  • Aug July 2020 DOLLAR LOWS 10% drop - The dollar fell in July 2020 to a two-year low against the euro
    • Depreciation that has reversed almost half of the appreciation of the last ten years within the space of just months.
  • May 2020 - Massive Fed Swaps and pouring buckets of liquidity into financial markets => USD Depreciation rapidly
  • Mar 2020 - DOLLAR HIGHS Strengthened on crisis - When the COVID-19 pandemic went global in March, the dollar strengthened on the back of safe-haven flows into US Treasuries, as it does at the start of every crisis.

2020 EU - pragmatic

  • EU has pragmatically straddled US/Russia/China relationships - able to be the "hard forex buyer" of global goods vs US trade wars
  • EU has not had to WASTE massive amounts on defense like USA - so it invests all that into its "social welfare", education and training Industry 4.0
  • Europe has had FAR better Covid-19 recovery
  • Europe PMI and optimism at high levels
  • Euro $775b bailout for weak countries
    • This validates EU's push for deeper fiscal integration - and alternative to USD
    • But this is only 5% of outstanding USTs - ie it would take 20 years for Euro to be as important in global reserves!

2018+ Trump Trade wars


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