inflation in china, falling dollar and new oil bourse

china is facing record levels of inflation, the USD is at 30 year lows, and now Iran started a new oil bourse which won’t trade in USD, so what are peoples opinions, will the US and China be biting the bullet together? just one or the other? I’d like to get any opinions on where people think these economies will go now. especially from a currency perspective.

Greenspan the Traitor

I believe the Russians have begun selling oil in Rubles and now this above…?

One of the upshots has to be the price of petrol in the states - it will double in a year or two.

Petrol Prices in the US
California petrol has risen 26 cents in a month :open_mouth:

This has to have a significant impact on currencies and economies for the foreseeable future… How I’m not really sure

The US is in for a good long depression IMHO. The dollar will recover, but it will be > 5 years away.

I see the dollar at around 1.65 to possibly 1.80 by year end, there is still a lot of “price improvement” left in it (sorry I really like the newspeak!).

None of this current collapse is surprising, although it does feel a little strange that stuff that was on 5 years ago is written now in The New York Times.

Gold? Could it double to $1500-2000 in the same time frame as the dollar falls? I think it could, and more likely will gain that 25% at least over the coming few years than scale back, especially as oil continues to hold.

China will reduce dollar dependency, as is Iran obviously, and Russia has been switching away for a few years. The current fall in the dollar is not some crazy dumping, but a gradual effect: it seems to drop ~5c every 2-3 months, catch up by 1-2c and then another drop. If things continue this year the way it seems, another 9 months, 3 quarters, reduced Fed interest rates then 1.65 is not even that out there in expectations.

The end result will be no surprise as the end result of these cycles is predictable: less money in the pockets of the majority and the “trickle up” effect of recession.

If you want to know about China’s future, all I would say is that even you don’t know Chinese, your children had better be fluent.