louis on Nostr: There is also this strange mechanism where even when US policy causes issues ...
There is also this strange mechanism where even when US policy causes issues investors retreat to the USD to derisk. One sees it often. This means people in countries with weaker currencies often pay for US mistakes. US banks in trouble? Thr ZAR devalues against USD as people derisk to USD despite ZAR banks being operating with proper mark to market balance sheets.
This exports US problems to the rest of the world.
Published at
2023-09-09 17:37:26Event JSON
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"content": "There is also this strange mechanism where even when US policy causes issues investors retreat to the USD to derisk. One sees it often. This means people in countries with weaker currencies often pay for US mistakes. US banks in trouble? Thr ZAR devalues against USD as people derisk to USD despite ZAR banks being operating with proper mark to market balance sheets.\n\nThis exports US problems to the rest of the world.",
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