News, Rumors and Opinions Wednesday Afternoon 4-17-2024
KTFA:
Don961: : Attempts to reduce dollarization
Economical 2024/04/17 Muhammad Sharif Abu Maysam
We often witness a state of monetary instability in the economies of developing countries that suffer from structural imbalances, or countries that are going through stages of adaptation as they move from the state economic system to the market economy in light of economic globalization, which contributes to the emergence of informal currency exchange markets. Foreign exchange, and the US dollar is usually the most traded in those markets as a suitable haven for price value from exchange rate fluctuations.
Because of the dominance of the dollar in all global commodity and service market exchanges, demand for it increases with the aim of financing foreign trade in countries that suffer from the inability to meet the needs of the local market for basic goods. Monetary and financial disruptions usually contribute to the adoption of the dollar alongside the local currency, and then it replaces it.
Little by little, it will take up more space in exchanges and trades unless the matter is remedied and the imbalances are addressed.
Otherwise, the country’s currency will lose its usefulness as a means of exchange, so it becomes dollarization that contributes to perpetuating inflation, economic instability, and the difficulty of addressing imbalances as a phenomenon supported by the data of globalization.
Here, the relevant authorities, while they are in the process of searching for solutions that will restore life to the local currency and maintain its protection, may be concerned with searching for procedural tools to curb dollarization as a phenomenon that threatens economic sovereignty
Because it appears to be a natural result of the circumstances and data of the state of transformation in the form of the economic system, as it usually The adaptation phase occurs when moving from a state economy to a market economy, but here we are looking for solutions according to the available ideas.
In economic tradition, the demand for the local currency increases if it is adopted in trade exchanges with other countries, and thus the level of demand for foreign currencies in the local market decreases.
To finance foreign trade, this matter seems difficult at first glance, but according to what was announced by some BRICS countries, it seems possible, and the rate of demand for the local currency also increases if the contribution of the local product increases in satisfying the market’s need for goods and in a way that ensures a decrease in the rate of demand for the dollar as a result of the decline.
The rate of flow of hard currency abroad, and it also occurs in cases of relying on the local currency to deliver remittances coming from abroad, and it may occur when the demand for locally produced goods for export purposes increases, especially when the cost of the unit produced locally decreases compared to those produced in other countries
As increasing rates contribute Export increases financial transactions locally through the inflow of foreign currencies, which are converted through banking channels into the equivalent of the local currency upon exchange, which contributes to supporting the attractiveness of the local currency and the stability of its value, thus increasing the demand for it. link
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Driving America into a Brick Wall – Bill Holter
By Greg Hunter’s USAWatchdog.com
Back in February, when everyone was predicting a Fed rate cut, precious metals expert and financial writer Bill Holter said rates would be going up and not down. Since that call, the 10-Year Treasury is up more than 30 basis points. It closed today at 4.67%. Now, Holter is still calling for higher interest rates that will coincide with higher gold and silver prices. Why? It’s called inflation, and it’s not temporary.
Holter explains, “Foreigners are backing away from buying Treasuries. That is the only thing that has kept the doors open, so to speak, is the fact we are able to borrow an unlimited amount of money because we are the world reserve currency. Foreigners backing away from our debt is going to lead the Federal Reserve to be the buyer of last, and then, only resort.
So, you will have direct monetization between the Fed and the Treasury. What that will cause is a currency that declines in purchasing power. It will decline in a big way, and it will decline rapidly. So, what I am describing is inflation that turns into hyperinflation.”
But that is not the end of our problems. Holter points out, “I do think it is going to get worse, and that means interest rates will go higher, and that will put on much more pressure. We are at 4.65% on the 10-Year Treasury now. We went from 3.75% to 4.65% (in a short amount of time). We run through 5% on the 10-year Treasury, and everything blows up. . . .
The bottom line here is we are at the end game of a fiat currency.
Young people have never experienced high inflation. . . . Where we are this time around, Paul Volker (Fed Head in 1979) was able to raise rates to 16% or 17% and crush inflation. He was able to do that because there was not a ton of debt. The U.S. debt back in 1980 was 35% of GDP. Now, it is 125% plus debt to GDP. If you raise rates to 6% to 8%, you will blow up the entire system because much of this debt was put on during the 1% to 3% interest rate time. . . . The inflation is going to push rates higher no matter what the Fed says.”
Gold is hitting one new record high after another. It’s not greed, but fear, and Holter says, “Big money is buying gold because they are looking for protection.” The other wild card is war, and Holter says, “War is a way to keep the system propped up.”
In closing, Holter contends, what you are seeing is not a series of mistakes by incompetent people. Holter says, “This is too stupid for it not to be the plan. . . .This is not a Republican or Democrat thing. We are being steered directly into a brick wall because the globalists can’t take over the world with the US standing. They have to take the US down, and if they take the US down, so will the western financial system fall. If that happens, the globalists can have their way.”
There is much more in the 46-minute interview.
Join Greg Hunter as he goes One-on-One with financial writer and precious metals expert Bill Holter for 4.16.24.
https://rumble.com/v4pvkh6-driving-america-into-a-brick-wall-bill-holter.html
https://dinarchronicles.com/2024/04/17/greg-hunter-w-bill-holter-driving-america-into-a-brick-wall/
Mnt Goat I was told by my CBI contact that the currency swap out will happen as they will not hide this event and must inform the citizens (education process…). Yes, they also have to explain the exchange swap-out process and how it will work along with descriptions of the newer lower denominations. The CBI will then post those pictures of the lower denominations my contact told me were taken weeks ago. So, just wait and watch it all play out…You should be excited…with FACTUAL knowledge…
Militia Man The final provisions of the SFA are on the table…Security is set. The economic aspect is underway. We’re going to watch al-Sudani finish up his signing of contracts… I can’t imagine …how are you going to fund all this with an exchange rate of 1310 IQD to the USD? And how is it that that you’ve said the Iraqi dinar, Mr Al-Sudani, is stronger than the dollar?
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ALERT! ITS GAME OVER IF THE DEBT MARKET GOES “NO BID.” VERY IMPORTANT UPDATES.
Greg Mannarino: 4-17-2024
