Is the global reserve currency actually hurting us?
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| | | | “Wealth - any income that is at least one hundred dollars more a year than the income of one's wife's sister's husband.”
-H. L. Mencken | | | | |
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| | | | Markets Today
🌏 Asia-Pacific: Up
🇪🇺 Europe: Down
🇺🇸 United States: Down
🛢️ Oil: Up
⚡ Crypto: Down | | | | |
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| | | | Major Market Events
| | • | | NVIDIA climbs after crucial earnings shows outperformance
| | | • | | Tesla continues rough month, erasing most of the election gains
| | | • | | Jobless claims rise more than expected to highest in 3 months |
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| | | | 🤔 My Thoughts
I was listening to an excellent podcast with Tucker Carlson - not about politics, but about gold and the US Dollar.
The episode, which you can find on any podcast app, had Luke Gromen, a financial analyst as a guest…
And they had a fascinating conversation about gold and value and the US Dollar’s role as the global reserve currency.
The point that Luke makes is that dollars are to America what oil is to Saudi Arabia - as the global reserve currency, we are essentially the payment processor for the entire world.
And this has created enormous wealth in financial sectors like banking, insurance, investing and real estate.
As President Coolidge once said:
“The business of America is business”
But there’s also a serious downside. In the same way that Saudi Arabia has struggled to create an economy beyond their abundant oil resources, America’s financialization has hollowed out other key industries like manufacturing and agriculture.
Of course we’re not immune! We’ve built our entire careers around trading and market research. Not as a conscious strategy, but as the best job a young man could find out of college.
But we share some of the concerns about the over-financialization of the US economy, even as we’ve benefited from it.
Vice President JD Vance has talked about how the strong US Dollar has harmed blue collar manufacturing in the rust belt, where he grew up in poverty.
The whole interview is worth a listen - and with JD Vance a heartbeat away from the most powerful job in the world… it’s worth contemplating what a world with a weaker dollar would look like. | | | | |
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| | | | To Better Trading,
Alex Reid
Wealthpin | | | | |
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______________________________________________________ “Wealth - any income that is at least one hundred dollars more a year than the income of one's wife's sister's husband.”
-H. L. Mencken ______________________________________________________ ______________________________________________________ 🌏 Asia-Pacific: Up
🇪🇺 Europe: Down
🇺🇸 United States: Down
🛢️ Oil: Up
⚡ Crypto: Down ______________________________________________________ Major Market Events
- NVIDIA climbs after crucial earnings shows outperformance
- Tesla continues rough month, erasing most of the election gains
- Jobless claims rise more than expected to highest in 3 months
I was listening to an excellent podcast with Tucker Carlson - not about politics, but about gold and the US Dollar.
The episode, which you can find on any podcast app, had Luke Gromen, a financial analyst as a guest…
And they had a fascinating conversation about gold and value and the US Dollar’s role as the global reserve currency.
The point that Luke makes is that dollars are to America what oil is to Saudi Arabia - as the global reserve currency, we are essentially the payment processor for the entire world.
And this has created enormous wealth in financial sectors like banking, insurance, investing and real estate.
As President Coolidge once said:
“The business of America is business”
But there’s also a serious downside. In the same way that Saudi Arabia has struggled to create an economy beyond their abundant oil resources, America’s financialization has hollowed out other key industries like manufacturing and agriculture.
Of course we’re not immune! We’ve built our entire careers around trading and market research. Not as a conscious strategy, but as the best job a young man could find out of college.
But we share some of the concerns about the over-financialization of the US economy, even as we’ve benefited from it.
Vice President JD Vance has talked about how the strong US Dollar has harmed blue collar manufacturing in the rust belt, where he grew up in poverty.
The whole interview is worth a listen - and with JD Vance a heartbeat away from the most powerful job in the world… it’s worth contemplating what a world with a weaker dollar would look like. ______________________________________________________ To Better Trading,
Alex Reid
Wealthpin |
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