The Gorilla In The Room.
I used to expend quite a bit of energy (spilling copious amounts of digital ink in the process) describing the relationship between dollar liquidity and global trade.
Then it became readily apparent that nobody cared, despite the concept being both critically important and eminently easy to grasp. Better to stick with comparative arcana. The audience loves to be mesmerized with indecipherable desk chatter, but cares little for straightforward macro topics.
I doubt seriously whether the prefere
Sorry, what does TGA stand for?
Treasury General Account
Thanks Tom!
WOW. I was not at all aware of all these high finance tug of wars going on behind the curtains. I am impressed how you are able to explain this. I also was not aware of the overall trend of the dollar as it relates to trade. I would love to find a book(s) with all this laid out for a student of economics. Please anyone suggest favorite reading list(s). Better yet post as a reference list to this site.
This is one of my favorite topics that you cover- I am constantly watching USD/Euro.
As far as conspiracy theories, I think Angela is taking advantage of the US current and future inept global leadership and making deals with Xi to further strengthen the euro importance and further reduce the USD importance in the basket of global reserve currencies.
IMHO, what you do not posses (haha) in “brevity”, you more than make up for in your generous sharing of knowledge.
I think that Merkel and the EU are just pissed at Trump using the dollar to enforce his sanctions on them. I reckon it’s less to do with the Euro’s weakness against the dollar, which is to Germany’s advantage, than the realisation that EU trade policy is being dictated to by the US foreign policies. Trumps unilateral re-imposition of Iran sanctions forced Europe to look at an alternative to a dollar based trading mechanism, which was underlined by Trumps sanctions on companies involved in the Nord Stream pipeline.
“…the TGA has been increased so that it can be strategically released to coincide with Trump’s re-election.” – My thoughts exactly.
As someone who is fairly new to this site, this was very enlightening for me. I was not aware of any of these dynamics, but after a couple read-throughs, I think I understand the basics of what is happening so thank you for covering this topic.
Any reason it couldn’t be released strategically on Biden’s election???