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What specific thing(s) are you worried that USD will take a dive relative to? Then once you have an answer to that question, that might point you towards what
by JoshuaDavid 6mo ago
What specific thing(s) are you worried that USD will take a dive relative to?
Then once you have an answer to that question, that might point you towards what you want to be long.
- vrganj 6mo agoHow would buying Euros compare in terms of exposure?
- readthenotes1 6mo agoThe USD could take a dive against: yuan, eu, gbp, rial, gold, silver, platinum, WTI, SPY, etc. Only a few of them will matter on a day-to-day basis if you're currently in the US with assets valued in USD.
- vrganj 6mo agoCouldn't you just exchange your EUR for USD as needed? Use it as your reserve currency?
- 9dev 6mo agoTraders could start buying their oil using Yuan, for example. That’s not a theoretical anymore
- pfannkuchen 6mo agoWhat percent of dollars are tied up in in-flight oil transactions? And I suppose also in accounts that will be used for oil transactions in the planned future? That’s the mechanism for that supporting the value of the dollar, right, like, increased dollar demand via being used for oil market transactions?
- 9dev 6mo agoThe point is that the Petrodollar system requires countries to buy US treasuries to be able to buy oil. That is what makes borrowing cheap for the US, and what keeps the dollar demand up.
- pfannkuchen 6mo agoI'm not clear on how the Petrodollar system actually works. If oil is sold in dollars, that only has to affect dollar demand for the time it takes to transit through some other currency to dollars to oil. So however long that takes to settle. Where do the additional demand components come from? Why do countries have to buy US treasuries to be able to buy oil? Don't they just have to use dollars for the transaction?