Economic Thoughts from The Atlantis Report and Heresy Financial 8-4-2023
Will The BRICS Currency Take Down The US Dollar?
Atlantis Report: 8-3-2023
With the dollar making up 58% of the world’s foreign exchange funds and being used in 88% of overseas deals, it is clear that the dollar is the most important currency in the world.
Yet, since Russia invaded Ukraine, de-dollarization, which means lowering an economy’s dependence on the U.S. dollar for foreign trade and banking, has been speeding up.
The BRICS countries have been working on many projects to reduce their dollar reliance. Over the past year, Russia, China, and Brazil have used non-dollar assets like the yuan more often when doing business across borders.
Iraq, Saudi Arabia, and the United Arab Emirates are all looking for ways to avoid using the dollar.
And central banks have tried to put more of their savings into gold instead of the dollar.
The End of Japan's Yield Curve Control
Heresy Financial: 8-4-2023
The Bank of Japan shocked markets with a surprise change to its yield curve control. The biggest shock being this is not a standard change to yield curve control where they say, hey, instead of interest rates being capped at half a percent, we'll let them go up to 1%.
In this case, it's a mash-up that leaves investors wondering what the Bank of Japan will do.
TIMECODES
0:00 BOJ Shocked the Markets
0:46 What is QE?
5:36 What is YCC
8:12 Japan's Prior Policy
8:59 Japan's Move to QE
10:38 What This Means for US