The DC Today - Tuesday, January 31, 2023
Manage episode 354065255 series 2524881
ASK DAVID “Would you mind giving me your Cribb note version of your expectations on the USD’s devaluation now that Saudi Arabia (and probably others) are willing to trade oil for other currencies than the US dollar? If you expect a significant currency related (not just inflation related) devaluation, do you have an idea of how we can offset that?”
The main thing to say is that: Saudi has not yet done it, it will take a while to happen, it may happen at very small levels, and we do not expect a significant devaluation from this alone. We do believe it is a shot across the bow geopolitically, but not in fundamental forex (yet).
The major thing for investors to understand is not that the collapse of the dollar is imminent (I wish I had one dollar for every time someone has suggested that or fretted over it in front of me over the last 25 years, for I would surely have a great deal of very spendable and exchangeable and useable dollars). Rather, it is that China is desperately seeking international legitimacy for their Yuan. The rest of this subject is mostly noise. Links mentioned in this episode:
[TheDCToday.com] https://bahnsen.co/3JMMeP1 DividendCafe.com TheBahnsenGroup.com