I told ya

 

what I thought on March 1st 2022.

"I"

When I first went to post this I thought 

"Oh shit, that's before I wrote what I did."

Turns out?

It was actually 28 days before.

Analysis: As sanctions 'weaponize' U.S. dollar, some Treasury buyers could fall back

March 29, 2022

I was going to share it anyway as it gets into a lot more specifics about what could, has, and may yet transpire.

"March 29 2022 (Reuters) - U.S. sanctions against Russia should hasten a move by some countries to reduce their reliance on the U.S. dollar, which could also soften demand for Treasuries just as the Federal Reserve, the largest holder of U.S. debt, looks to cut its bond holdings."

"The United States and other Western nations have imposed widespread economic sanctions against Russia in response to its invasion of Ukraine, which have effectively cut off Russia's central bank, sovereign wealth fund, banks, and certain individuals from entering into U.S. dollar transactions."

"The dollar is the world's top reserve currency. Analysts say using it as a financial weapon is likely to accelerate a move already under way by many countries to diversify investments into alternative currencies."

“The more we use it, the more other countries are going to diversify due to geopolitical reasons,” said Zongyuan Zoe Liu, a fellow for international political economy at the Council on Foreign Relations.

(Yup, happened.)

"The dollar’s reserve status boosts demand for U.S. assets including Treasury bonds and allows the government to issue more debt at lower rates than it may otherwise be able to. Treasuries are also attractive to investors as the market is larger and more liquid than others."

(This is exactly:

"...dollar’s reserve status boosts demand for U.S. assets including Treasury bonds and allows the government to issue more debt at lower rates than it may otherwise be able to"

what we can no longer do.)

"Though the dollar is unlikely to be replaced as the reserve currency anytime soon, any steady shift away from the greenback may lead to a more fragmented global economy where payments are more evenly split between currencies including the dollar, the euro and the yuan."

(Just always remember this:

It ascended to its role as reserve currency king:

"almost overnight." after WW1.)

“US dollar debasement (is the) ultimate outcome as dollar weaponized in new era of sanctions,” Bank of America analysts led by Michael Hartnett noted in a report released Thursday.

(We wouldn't have done it if it wasn't our only option and just goes to show my point that when all you have is bad and worse as options? "The lack of available good choices to the myriad crises we face etc?" Show you right where we are.)

"In a sign that shift is already gaining pace, The Wall Street Journal said this month that Saudi Arabia was in talks to price some crude it sells to China in yuan."

(This is at the end of March of last year mind you.)

"Russia has been gradually reducing its dollar holdings since the imposition of Western sanctions following Moscow’s annexation of Crimea in 2014. In 2021 it said it would ditch all U.S. dollar assets in its National Wealth Fund and increase holdings in euros, Chinese yuan and gold."

"Russia’s Treasury holdings fell to negligible levels in mid-2018, and are down from around $150 billion a decade ago, according to Treasury International Capital (TIC) data."

(Almost like somebody had a plan huh?

Interesting.)

“The sanctions on Russia will be a bit alarming for many of the major oil exporters that hold large amounts of Treasuries (and US assets in general) and might hasten some diversification plans. That could mean that some of the support for Treasuries from foreign savings, such as we saw in the mid-2000s, could be absent during this tightening cycle,” Mathews said.

awesome :-). 

Dont ever ask God:

"Whats next?"

Actually?

Just dont ever ask it period, 

let alone when things are headed south.

I could just about guarantee you,

 how ever bad you thought things were?

You go asking:

"Whats next?"

And it will be something you could have never seen a million miles away coming at you way worse than whatever made you ask:

"Whats next?"

To begin with...

promise.)