How USD Strength Might Last Longer? #55

2 years ago
10

As the #Fed raises rate by 0.5% and #USD strengthens over the weeks in relation to major #fiat currencies, I lay out three mechanisms that the Americans may keep USD relatively strong:

1. EUR, JPY, GBP have worse fundamentals
2. Fed / US Gov could prick the bubble in its financial markets
3. US Gov can default on its debt (masqueraded as sanctions)

I see 3-5 years of relative strength before eventual weakening. The turning point will be the collapse of the Euro. This doesn't mean there won't be high levels of inflation. "Strength" is only relative in a fiat world. Real assets (not even real estate, which has been subject of speculation) will be where wealth could be preserved.

My telegram channel: https://t.me/realdrjlt

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