Re: USD Wrecking Ball World Tour & The CNY Facade.
Lots of hyperventilation lately over the “weaponization of USD”/imminent doom of USD hegemony as a result. While the de-dollarization narrative is seductive, the USD remains the “cleanest dirty shirt"
I’ve written about the determinants of RELATIVE value for currencies. While Debt/GDP is one factor, a myriad of other factors go into the determinants of “safety and soundness.” This thread talks about geographical/geopolitical determinants of value:
Moving to the USD specifically, this thread links the developing STRUCTURAL supply deficit in oil (now gr…