RiskReversal Pod Gold, Ghost Cities, and the Great Credit Cycle: Mike Kao on Global Economic Shifts
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Apr 25, 2025 AI Snips
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Dollar's Unique Global Dominance
- The US dollar goes through cyclical bouts of weakness but remains unmatched in adoption and strength globally.
- No other country currently dominates all pillars of national power to replace the US dollar as the reserve currency.
US Debt Contextualized
- US debt levels seem high but are less alarming when considering military strength and geopolitical advantages.
- Comparing with Japan and a focus on intangible assets softens the apparent risk of US debt.
Oil Market Dynamics
- Saudi Arabia's unilateral oil cuts temporarily support prices but also prolong US shale subsidies.
- Fed rate hikes will eventually win over OPEC's price support, making oil rallies unsustainable.