By - Heisenberg_USA
Stablecoins have been a banger for us europoors
Be your own bank too... just avoid USDT... go with GUSD or USDC.... and self custody. Pretty solid self banking.
Everyone in Argentina uses USDT
Yea... it is widely available, but it is a risky hold compared to the two I mentioned.
Because it's not really backed by anything, is point number 1.
USDT backing is not known, and it is highly suspected they have printed USDT out of thin air. Not all of it, but much of it.
GUSD is regulated, audited and backed by actual USD. USDC is regulated, audited, backed by a mix of USD and assets approved to be a backing.
USDT is ok for short term hold if you are trading on a usdt pair. But a long hold is very risky.
The other nice thing, at least in the US is that if you are -only- trading USD for USDC (or any stable coin), there almost certainly would not be enough of a capital gain to even have to report in taxes. Anything under $400 total cap gain would not need to be reported. Typically, there is a $0.0001 spread on USD vs a stablecoin, so you would need to trade over $4m to even be in a $400 cap gain, and the fees would negate the gain, so really, near impossible to record a cap gain. You could even write off the loss in fees if were to report. This is a great way to hold cash and not be subject to any banks controlling (stealing) your cash funds.
Not surprise at all, a couple of my Turkish friends are also protecting their portfolio by sitting in stablecoins some are leveraging DeFi tools like Spool to gain reasonable yields on them, that's gold for Turkish people atm.
If the dollar is rising so much why is inflation still going up? Shouldn’t a stronger dollar mean cheaper products? Or is this only exchange rates and not really tied to actual prices?
This is the dollar vs other currencies.
Every currency is falling in value.
The dollar is just falling slower.
This is the correct answer.
Falling slower so far.
The dollar is falling compared to what? The dollar index is up...
The cost of goods and services
DXY is not the dollar. I hope they dont have you thinking when the DXY goes up your dollar gains value too.
The dollar is falling.
Others are just falling faster.
> DXY is not the dollar.
It is not the dollar but it is effectively the value of the dollar, that is the point of it.
No actually it is not at all the value of the dollar, its the dollar vs a basket of other currencies.
If the dollar is falling, which it is, and the rest of the things in the basket are falling then you have no reference point for the actual value of a dollar.
This is a great question. The value of the USD isn't related to the price of a good or service in some special cases. For example, assume the supply chain has constricted due to logistics companies and producers slowing down or going out of business over 3 years due to the Pandemic. The value of the USD may be irrelevant if it takes significantly more time or energy for me to get my product to you due to those contractions. This is part of what is going on today and the DXY or Dollar Index is direct evidence of that. It is also direct evidence that printing more USD hasn't had the impact many on this sub think. Supply and demand for the USD set the value of it, and not just supply. The reasons for the increased demand is complex but mainly driven by the downturn in the stocks and bonds markets which are major stores of value globally. As people freak out and pull their money out the demand for liquidity (or cash) increases. The expectation of recession and the FED making borrowing more expensive are what is cooling those markets. Hope this helps.
debt priced in US dollars while native currency inflation outpaces USD inflation, countries printing more money and devaluing their currency more in order to service US debt
This is the USD relative to other currencies, not necessarily the USD relative to assets or goods
this exact scenario was predicted and explained months ago by someone on another subreddit, can link if you’re interested but it’s a long read
I'm interested, please share.
Search Brent Johnson Dollar Milkshake Theory
Explained in this 6min video: https://youtu.be/xxzy3sLs4Bs
Yes please share good sir
If you can easily dig up that link I’d be interested!
The problem with a stronger dollar is that if you account for it in other currencies, It actually is bad for businesses cause the profits that are made in other currencies are becoming smaller due to the fact that you have to exchange those said currencies back to dollars. For example if you made profits in pounds and then turned them into dollars, you would have less of a dollar value compared to what it was a few months ago. This makes international business management harder and also unprofitable and so companies might have to actually close or reform how they operate their business branches in other countries.
Just pushing to new world order.. From covid to market crashes, its all about destabilization. That is why literally nothing makes sense.
Yeah I’m afraid there’s something to that. I was watching the news today and they were talking about how all the worlds central banks need to be working together and pretty much pushing for a single governing body over the world banks. Weird times we live in.
Didn't expect you to agree actually 😅. How refreshing. To us it is weird, that people would give up their sovereignty. To those in power, it's about absolute power. Wouldn't that single governing body be the IMF?
When I was young my friends and I, just in highschool(c.2004) and there was something called agenda 21 and we spent countless hours researching, debating among eachother and watching the same videos over and over in disbelief. We watched "zeitgeist" and "amenstop" videos as well, but nothing from either of those is as real as this agenda 21. Here is what it has evolved into.. keep in mind, this is the united nations website; this is as real as it gets.
"Sustainability" their favourite buzz word. Devious, open ended wording all throughout.
Relative value vs absolute value.
Relative value $ is rising compared to other currencies.
Absolute value the dollar is also losing purchasing power - just not as past as other currencies.
Dollar Milkshake Theory
When there is a economic crisis, people go to the dollar so that they can maintain some purchasing power because it's the worlds reserve currency for trade.
The other currencies will continue to fall.
What’s this in reference to? Inflation?
The US dollar is pegged to oil, oil is high right now and keeps rising, Europe has a shortage and Russians cut the lines... Strong dollar = high gas prices
Global debt is denominated in US dollar as well as most trade. Increasing interest rates means more dollars are needed to meet obligations and the more other currencies are devaluing in relative terms. The US increasing rates and not exporting as many dollars is straining the system. We’re seeing currency spirals as other countries are turning on the printers to meet obligations.
Damn, didn’t even think about that - thanks for the explanation
It’s the dollar milkshake theory actually happening before our eyes. Crazy times we live in.
Wow never heard of that theory but sounds spot on. No idea how to hedge against this type of event lol, I guess diversifying as much as possible but sounds like no investment is truly safe…
There’s a theory involving bitcoin in this situation as well. Completely separate from the dollar milkshake though. At some point the fed is going to have to start printing again to save the system. There’s a possibility that as US dollars start flowing into bitcoin when the fed printers turn back on. In that case the US economy will grow disproportionate to the rest of the world and other currencies will start to flow into bitcoin as people try to preserve purchasing power. They’d ultimately coexist as settlement layers. I imagine this scenario gets pretty messy if it were to ever happen.
Yeah that might make sense, fleeing to Bitcoin or gold…then the US would ban investments in either to keep money flowing, but probably would not turn out well lol
Sorry dumbo here, but back when US had $1.70 gas prices wasnt the dollar stronger then? When the US had an abudence of oil?
When it started using its reserves. They are now filling them a lot under 80USD per barrel
Good time to buy some foreign $$$, vacation discount ongoing
As long as you got your jabs and boosters, otherwise, good luck traveling. You get there and you could find yourself quarantined for two weeks.
That’s so not true! Most countries lifted their quarantine restrictions and the only country who takes covid seriously is China and even they require 1 week of hotel quarantine.
And New Zealand…..
I can’t look up every country, but you better research before you travel.
Here is non US people coming to US:
“Last updated September 26, 2022 at 11:45am EST.
All non-immigrant, non-U.S. citizen air travelers to the United States must be fully vaccinated and provide proof of vaccination status prior to boarding an airplane to the United States. In addition, fully vaccinated foreign nationals may also enter the United States at land ports of entry (POE) and ferry terminals.”
So please.... do not tell me every country lifted restrictions. That is just wrong.
All other fiat currencies are just alt coins to the dollar, since if they are backed by the IMF, the dollar is the reserve currency by the IMF, who is the lender of last reserve. In other words, most other fiat currencies are backed by the dollar if they are part of the IMF.
Interesting. Never really looked into the IMF and how it works.
They are a lender of last resort. So if you’re a foreign government and a member, and you become insolvent, the IMF can bail you out using dollars. In return, the IMF essentially owns you. To be a member, your country cannot use an asset backed by a hard asset, such as gold, for example, since they want you to be backed by the dollar (which is backed by faith). It’s really why the whole world moved to the state run fiat standard relatively recently. Gold has been the currency for thousands of years up until 1971.
No, gold was NOT the currency for thousands of years, a shitton of times the world ran on what nowadays we call fiat, even the romans kept switching
money is used to pay debt, it has absolutely no care whether it is gold or not, open some damn anthropology books before speaking on historical financial matters
Gold was used as a sort of currency just because after plundering cities they melt gold to share the resources between the soldiers ( same for silver), lets not forget the romans used salt as currency too.
[Gold coins were used as money as early as 500-700 bc](https://www.gold.org/history-gold/gold-as-currency). Prior to gold, copper, silver, iron, obsidian, etc were all used as currency as well. The point is that for thousands of years, gold was the currency for most of recorded history, and even before that, other hard assets were currency. Fiat is a relatively new concept, with complete fiat standard beginning in 1971 here in America when we left the gold standard.
Gold coins were used, but not the gold itself and I hope you will get that in your head, the nominal value of the currency wasnt the same as the gold worth, those gold coins in time had less real gold but still the same national value.
1 Dinar was 1 Dinar even if it was only half gold or no gold
I really really recommend you read David Graeber's book on the anthropologic history of money, there is also the "Money book" or whatever that was called but it came back to David Graeber, he explained the history so well most people would rather refer back to his book rather than explain it themselves in their own books
Coming back to crypto since we are in such a sub. Bitcoin has no real backing, it has about as much backing as USD, nothing, its pure fiction that we use and we evolved into for the sake of survival long term
there are a lot of crypto's used today, " used" though most of them have no real facilities to be use, literally the only 2 i know of that have any chance to be used irl are Algorand and Velas, and mainly their chains not the crypto itself (I excluded Bitcoin, i prefer leaving it in its own category)
and they have just as much backing
in the end its the human mind giving value not metal nor anything. money is fiction we collectively share, like Folk stories and such
Bitcoin is backed by its decentralized governance whereas fiat is backed by centralized governance.
1 bitcoin is definable relative to its own supply, which is 1 bitcoin is 1 out of 21million. The dollar cannot be defined against its own supply. $1 is equal to 1 out of 20 trillion today and probably out of 50trillion later.
bitcoin does not have decentralized governance please learn how L1's work first then we'll be able to talk
Tell me who the central authority is who governs bitcoin.
Youre fucking stupid. thats all I have to say.
Theres no governance in L1's, THERE IS NO TEAM OR LEADER THAT DECIDES SHIT YOU MONGREL
Meanwhile the other 2 dollars sad this doesn't apply to them. You can add all 3 and not even get to three fiddy now a days.
Well please add swiss franc in the chart 😊
I love the swiss, they know how to fight inflation properly, even their crypto currencies run that way haha, VLX for example takes a lot after that same anti inflationary ideology
But at the same time, their system of governance and just overall financial markets work differently, being a confederacy it is really an incredible thing
My milkshake brings all the boys to the yard
Look into the dollar milkshake theory.
Some of the confidence is coming from how the U.S. is responding to Russia/China aggression.
Google the Dollar Milkshake Theory
A good read
Dollar is the biggest bubble and will fall the hardest
Money printer go BRRRRRR. World is like MORE!
Where’s China at?!
Fake moments as Dollar is supported by nothing just scam pyramid!
If you consider the world’s reliance on purchasing oil a pyramid scheme. All things considered, it’s by far the best option in a post-Breton Woods Agreement world.
Before you respond, think about how we literally installed Saddam Hussein into power to protect the petro-dollar then had him unceremoniously removed from power by way of murder for attempting to accept Euros in exchange for oil.
Tell me you don’t know shit without telling me
I’ll give you just printing unlimited money isn’t great, but to say it’s not backed by anything is fucking stupid. Just because there’s no gold or whatever 1:1 doesn’t mean its just garbage. There’s a whole big world out there between the black/white lines you wanna draw.
The US dollar supported by people hype - “we believe in GOD” or stupid government which currently don’t know how to run the country! The US dollar era is over so soon will be less countries use for transactions and it will be end of stupidity and hype!
All down voters are stupid idiots and such people don’t have brains as their TV has more brains than such people.
Whatever you say kid
Negative beta dollar lol
As long as the Fed continues to raise rates, and keep it there, the Dollar will get stronger and stronger causing a lot of financial destruction in emerging market economies (especially in the credit markets), including developed ones like the UK, and FX turmoil! GLTA!!!
Personally I think sometime most likely within a month or two, maybe even the next few days, DXY’s going to 119-121 in conjunction with another big dump. Crypto and stocks have actually been holding surprisingly well over the last few weeks as DXY’s been pumping, when usually a couple % up for DXY means significant downward action, so I feel like we’re overdue.
Soooo yolo into foreign shit-coins?
What is making the dollar go up ?
Down global markets or extreme fear based markets cause investors to move over to the USA as our dollar is technically built to fall much slower. We also have a more stable system. Add that with the interest rate hikes and boom liquidity flows into the USA.
Thanks for breaking down , the way you break down helps me wrap my head around it . I follow the logic . Crazy times we are in . Wow
Np it helps to know what's going on and asking questions is almost always a good thing. Better to get a legit answer before weird misinformation spreads
It looks like the world has a lot of faith in the US and especially in Mr. Powell.
Did you have an alternative economy in mind?
Not at all. I'm going long on USD. I believe emergent markets' currencies will suffer the most in the upcoming months.
The milkshake dollar theory
They’re pumping all their foreign assets into us assets. Sheeesh it’s gonna be a wild ass fucking ride
This is a really fucking great visual 🤟🏽🕳
Is it worthwhile strat long term to purchase say the euro and hold for long term?
For us, stablecoins have been huge.
Because they could just print more! Which country does that publicly and not being punished.. time will tell soon enough
‘Merica!!! Fukc yeah!!!
Why is inflation still growing if the value of the dollar is increasing so much?
Interesting. Never fully investigated the IMF's operations.
And I’m proud to be an American… 🎵
What happens when the de-levering is over and the bottom falls out?
It’s called Soccer now
Ah.. Dollars r getting stronger
So what i gather from the comments thus far is that itll peak soon and when it does is when we should expect the true beginning of the recession. Then i assume USD will fall until some sort of equalising point which will be the bottom and we start pulling back again.
Crypto was a scam
Now compare the CHF to them 😎
USD almost ran as much as VLX did after it was announced they will get a lot of funds
Euro is getting pegged at the moment with so much shit going on around EU, we are right in the middle of the upfuckery but hey, anyone smart would have kept a combo of currencies tbh
I diversified even in crypto, could say im pretty safe from whatever bullshit will come, probably will not be a billionaire but I won't be struggling
Bunch of people seeking safety in the USD, rightly so at the moment, interest rates going up, inflation being fought against, energy crisis is barely a thing, the US is really "anti fragile" which long term gives a much better foundation
22% against the other currencies is actually crazy, even the september run was crazy, almost looks like the VLX run and they got a loooot of funds haha and a big announcement
for US investors its possibly a good time to buy into other currencies with part of the portfolio, can yield some nice long term gains and hedging in the future
ehh its just falling slower then any other currency
This is part of the plan.
The fiat currencies will collapse against the US dollar at first.
Then it will be the US dollar itself that will collapse against Bitcoin.
Hard money always wins. Bitcoin is the hardest money in the world.
This is like how my grandma transitions from conservative to a liberated one. DXY should stop rallying now or it'll be the match to start a wildfire. EUR is probably the most eye-catching for me as I'm also trading USD/EUR pairs on FX. At some point, it would be bad for crypto IMO that's why I'm staking my assets like IRIS and PGEN and am tuning in for more raises on Polygen's launchpad.
USD to the moon! 🚀
The us has given the whole world loans and know they are paying an interest that let the value fall of the ones who have to pay back.
Very nice endgame usa. They got Europe again.
The dollar milkshake theory - youtube its happening...