JustDario @DarioCpx tweet:
How the G7 Central Banks collapse ALL at once…
Because the dollar was pegged to Saudi oil, the G7 Central Banks (Bank of Japan) printed their own local currency (bonds), to acquire dollars (U.S. Treasury bonds), $1.1 trillion worth, This not only strengthens the other G7 currencies by holding dollar bonds (because the other G7 currencies were not pegged to Saudi oil), but now, the U.S. Treasury could create a double entry bookkeeping scheme (you create the asset, the bond. Then you create the liability, a deposit).
This allowed the U.S. Treasury (through Blackrock-Vanguard etc., etc.) to acquire cheap foreign assets of poor countries and denominate them in dollars, that created a huge equity market. Now, all the other currencies within the G7 could do the same as long as they held the dollar carry trade on their central bank balance sheet, the Euro system could then inflate Ponzi assets.
Remember, the G7 currencies would be nothing without the **dollar Saudi oil peg.
The Fed funds rate is still 5.5% for the other G7 Central Banks that hold dollars. And to keep the G7 local currencies from collapsing against a stronger dollar, and to suppress bond yields against rising dollar interest rates, the G7 Central Banks printed Like CRAZY (their own currencies).
O.K. Now REMOVE the Saudi oil peg from the dollar that occurred on December 5th, 2023 during P---n’s visit to UAE/S.A. Remember how the G7 Central Banks printed their local currencies to acquire dollar bonds? And to keep interest rates suppressed? The dollar peg to the other G7 Central Banks allowed them to also inflate financial assets via the yen, the euro, the pound, etc., etc.
Now that the Arabs have removed the oil peg from the dollar, what is the value of the yen, the euro, the pound, etc. and their corresponding financial assets? ZERO! What is the value of the dollar at 5.5% interest rate for the G7 to hold Dollars that no longer have an oil peg? ZERO! If the G7 were to unwind the dollar carry trade, and because the G7 no longer wants to pay 5.5% interest on a dollar that no longer has an oil monetary anchor. And now because the yen, the pound, and the euro financial assets are worthless without the Saudi dollar oil peg, do you think the Federal Reserve would want to buy back their own worthless dollars (from the G7) at 5.5% interest rate when their dollar no longer has the Saudi oil peg??? NO!
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Welcome to the financial collapse everyone. And the Bank of Japan can “fluff” their balance sheet all they want; they aren’t getting any oil. And they’re still going to BLOW UP!
RETWEET this out so everyone understands how the G7 Central Banks ALL go down at once!
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