Rebel Capitalist News Dollar Wrecking Ball Accelerates, LA Fires Aftermath, Can US Deglobalize?
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Jan 18, 2025 The podcast dives into the implications of the dollar’s rising strength and its effects on global economies. It highlights the struggles faced by LA homeowners after devastating wildfires, emphasizing financial and emotional challenges. The discussion also tackles the complexities and contradictions of deglobalization, weighing its potential benefits against the need for self-sufficiency. Listeners learn about the intricate production journey of a simple pencil, showcasing the challenges of modern manufacturing in a deglobalized world.
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Dollar's Critical Threshold
- The dollar's rise above 110 on the DXY is a critical threshold.
- This impacts international economies, the global monetary system, and bank liquidity.
Bank Indonesia Defends Rupiah
- Bank Indonesia is defending its currency, the rupiah, after the dollar's surge.
- Central bank interventions rarely work long-term, as seen with Japan's intervention.
Mainstream Media's Misplaced Focus
- Mainstream media focuses on the dollar's impact on US corporate earnings.
- The bigger issue is global dollar liquidity and risk-off sentiment, impacting corporate earnings.