The world is dumping dollars

And gold rules the day

______________________________________________________ Monday, April 21st ______________________________________________________ Maybe the moon is beautiful only because it is far.”  - Mahmoud Darwish Hope everyone had a good Easter!  A lot of happenings going on in the currency and bond markets today. First off, China has made it clear that they expect other countries to shun the U.S.   The question is:  What countermeasures is China capable of making? Unlike the U.S, China isn’t as central to global currency plumbing. They don’t control swap lines, petrol isn’t settling in Yuan, etc. I suppose they could cut exports, thus strangling external commerce. But China simply doesn’t have the same level of coercive economic firepower as the United States.  Meanwhile, the Dollar has fallen below $100 for the first time since 2022.    At the same time, bonds are selling off, which is not supposed to happen. The question is, “Why is this correlation breaking?” Let’s focus on both sides of the equation individually. It seems that one likely explanation for the dollar sell-off is that countries are being forced to liquidate USD in order to settle their home-currency basis trades.  The reason that bonds are selling off at the same time might be a little trickier. It could be a global repricing of the USD as safe haven asset. If bond holders view the U.S. as riskier to invest in than before, they may demand higher premium for bonds.  But my question to this is always:  “Where else will you go?”  China? They’ll steal everything you have.  Europe? They don’t have industry or a military  Emerging markets? If you think the U.S. is an unstable place to invest, wait till you go somewhere without the rule of law.  The bond market is opaque, and for us standing watching outside, it’s important to understand that we may not be able to know what’s going on in the backrooms, but we can at least think through the possibilities.  Meanwhile, gold is surging. And I mean surging. It’s right now trading at $3,413.  Trump made an interesting tweet yesterday:   We know that China has been purchasing a TON of gold. We also know that U.S. banks have been importing truckloads of bullion over the past year. And we know that the U.S. owns by far the most gold tonnage in the world — 8,133 tonnes.  Are both the U.S. and China getting ready for an asset repricing? Could the U.S. be going back to the gold standard? Interesting to think about.  ______________________________________________________ 💥The Wealthpin Morning Magic💥   Every morning Monday-Friday at 9 AM EST, I’m going live for “The Wealthpin Morning Magic” stream. We will talk about: Daily market levels Macro news My favorite ticker setups And much more! Click this link every morning at 9 AM to join me in Zoom! 📢 P.S.: Join my Telegram channel here to receive reminders and more so you don’t miss any of my streams! ______________________________________________________ ______________________________________________________ Testimonial of the day   ______________________________________________________ To Better Trading, Alex Reid Wealthpin   WealthPin

______________________________________________________ Monday, April 21st ______________________________________________________ Maybe the moon is beautiful only because it is far.”    - Mahmoud Darwish Hope everyone had a good Easter!    A lot of happenings going on in the currency and bond markets today. First off, China has made it clear that they expect other countries to shun the U.S.   The question is:    What countermeasures is China capable of making? Unlike the U.S, China isn’t as central to global currency plumbing. They don’t control swap lines, petrol isn’t settling in Yuan, etc. I suppose they could cut exports, thus strangling external commerce. But China simply doesn’t have the same level of coercive economic firepower as the United States.    Meanwhile, the Dollar has fallen below $100 for the first time since 2022.    At the same time, bonds are selling off, which is not supposed to happen. The question is, “Why is this correlation breaking?” Let’s focus on both sides of the equation individually. It seems that one likely explanation for the dollar sell-off is that countries are being forced to liquidate USD in order to settle their home-currency basis trades.    The reason that bonds are selling off at the same time might be a little trickier. It could be a global repricing of the USD as safe haven asset. If bond holders view the U.S. as riskier to invest in than before, they may demand higher premium for bonds.    But my question to this is always:    “Where else will you go?”    China? They’ll steal everything you have.    Europe? They don’t have industry or a military  Emerging markets? If you think the U.S. is an unstable place to invest, wait till you go somewhere without the rule of law.    The bond market is opaque, and for us standing watching outside, it’s important to understand that we may not be able to know what’s going on in the backrooms, but we can at least think through the possibilities.    Meanwhile, gold is surging. And I mean surging. It’s right now trading at $3,413.    Trump made an interesting tweet yesterday:   We know that China has been purchasing a TON of gold. We also know that U.S. banks have been importing truckloads of bullion over the past year. And we know that the U.S. owns by far the most gold tonnage in the world — 8,133 tonnes.    Are both the U.S. and China getting ready for an asset repricing? Could the U.S. be going back to the gold standard? Interesting to think about.  ______________________________________________________ 💥The Wealthpin Morning Magic💥   Every morning Monday-Friday at 9 AM EST, I’m going live for “The Wealthpin Morning Magic” stream. We will talk about:   Daily market levels Macro news My favorite ticker setups And much more!   Click this link every morning at 9 AM to join me in Zoom!   📢 P.S.: Join my Telegram channel here to receive reminders and more so you don’t miss any of my streams! ______________________________________________________ ______________________________________________________ Testimonial of the day   ______________________________________________________ To Better Trading,   Alex Reid Wealthpin WealthPin

A Wealthpin Publication ABOUT US: Wealthpin is a publishing and education company. We believe that the best manager of your money is YOU and we want to give you great research to help you do that. Our goal is to uncover cutting-edge investment ideas and share them with you in a way that’s clear and useful.  Our  investment research is typically focused on undervalued stocks, high dividends and major growth potential. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Wealthpin  are for your informational purposes only. Neither Wealthpin  nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Wealthpin is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit https://wealthpin.com/terms-of-use/ for our full Terms and Conditions. Unsubscribe This email was sent to reunisoft.cryptonews@blogger.com by Wealthpin 101 Marketside Ave, STE 404, PMB 318 | Ponte Vedra | FL | 32081 WealthPin

A Wealthpin Publication   ABOUT US: Wealthpin is a publishing and education company. We believe that the best manager of your money is YOU and we want to give you great research to help you do that. Our goal is to uncover cutting-edge investment ideas and share them with you in a way that’s clear and useful.  Our  investment research is typically focused on undervalued stocks, high dividends and major growth potential.   DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Wealthpin  are for your informational purposes only. Neither Wealthpin  nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.   DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Wealthpin is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit https://wealthpin.com/terms-of-use/ for our full Terms and Conditions.   Unsubscribe This email was sent to reunisoft.cryptonews@blogger.com by Wealthpin 101 Marketside Ave, STE 404, PMB 318 | Ponte Vedra | FL | 32081 WealthPin