China buying US Oil instantly makes the Dollar more valuable
Warsh was originally appointed by Bush. He is an Oil guy. He will certainly favor monetary policy that favors Oil. Nobody obtains power without the powerful people in the background granting them that power.
Oil guys want the petrodollar to remain the standard, or at the very least, a USD cryptocurrency that is tied to the petrodollar.
The dollar strengthening is BAD for equities markets, because bonds now become more attractive investments than equities and commodities. Stronger dollar = weaker equities, weaker commodities, stronger Treasury Bonds. You want to sell debt: NOT buy it.
This was never about Iran. This was about saving the US Dollar. My personal bet is that we would NOT let it hyper-inflate, letting everyone in debt off the hook. The largest amounts of marketing funds for advertising in this country is focused on selling people DEBT. True Bears in the stock market were not betting against America: they were betting that the FED would eventually beat inflation, and that the dollar would win in the end.
The commodities market skyrocketing over the past few months signaled that the dollar was falling off a cliff: perhaps it is saved now.
(2020 - Current) Bull market in equities was all about equities being the safest investments with the largest returns, therefore money was concentrated there. Powell wanted a “soft landing”, and that is not what we are going to get.
Warren Buffet is 50% cash (give or take). His business strategy is to bank on reality: that the dollar will lose a steady value over-time, but that dollars were the investment to be had. Equities, Commodities, Crypto, Real Estate, Forex SALES against USD…hope you are short. Ben Franklin is about to become relevant again.
Who’s ready for a….(cue music and zombies voice)
“FIRE SALE”