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analyst75

Don’t Bet on the Dollar

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Our colleague Jim Rickards took the podium to outline in great detail -- through the geopolitical lens -- why that is.

 

“It’s simple,” he says: “It has everything to do with the weaponization of the US dollar.”

 

Of course, he goes on, “Economic and financial sanctions are not new -- US has used asset seizures, freezes, embargoes, blockades, tariffs, and trade bans many times in the past.”

 

BUT…

 

Recent history reveals that US sanctions only work under three conditions:

 

1.] Target is a small to medium sized economy

 

2.] Target has no alternative payment channels

 

3.] Target has limited hard currency (or gold) reserves

 

“None of these conditions apply to Russia,” said Jim.

 

The U.S. sanctions on Russia are without precedent. Assets of Russia’s central bank and commercial banks were seized. Russian banks were ejected from SWIFT. Investment by U.S. entities in Russia is prohibited.

 

Russian exports of oil, gas, strategic metals, and other goods have been banned.

 

Imports of high-tech equipment, semiconductors, luxury goods, automobiles, and many more goods are also banned.

 

And yet…

 

“Russian sanctions have been a complete failure,” said Rickards. “Russian growth in 2023 is projected at 2.1%. USD/RUB was stable at around 70 from May 2022 to May 2023; down slightly now to 95. “

 

If you’re not worried about this…

 

You might be worried about the blowback.

 

Or the response to weaponization..”

Author: Jim Rickards


Profits from free accurate cryptos signals: https://www.predictmag.com/ 

 


 



 

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Indeed, dollar started to feel weak recently as US economy starts to show some some cracks in consumption, investment, labor market strength, etc. Fed is about to achieve terminal level of its restrictive policy stance after which rate cuts should ensue. My view on EURUSD is bullish that's why I keep small long position on Hotforex, hope my forecast is correct. 

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best of luck with eurusd, lots of things seem will be happening this year pretty sure the crypto market will be affected the most with global economy not seeming to work according to plan in the west. 

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I also look for major currency pairs usually associated with the USD for trading and any such exotic or minor pairs should be avoided while being a new trader in my opinion.

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one thing to look forward to is the elections in november, thigs will get crazy with the USD, but for now let hope for good results, im try to diversify the portfolio on hfm just to have more pairs and maybe less USD envolved when unsure

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