Oil - USD - BRICS

Impact of Rising US Debt on Inflation, Oil Prices, and USD's Status as World Reserve Currency

1. Powell's war against inflation will lead to greater inflation:

- Rising interest expense on Uncle Sam's rising debt will need to be paid with inflationary measures.

- The true inflation rate is closer to 11.5% rather than the officially reported 3.7%.

2. Oil-driven inflation is a major concern:

- US oil supply is falling due to rising rates and White House policies.

- Saudi Arabia and OPEC leaders are cutting oil production, leading to falling inventories.

3. Potential impact on inflation rates and markets:

- Tightening oil supply leads to higher oil prices, inflation rates, bond yields, and interest rates.

- Chinese oil demand could worsen the situation, impacting bond, stock, and real estate markets.

4. USD's strength, debt, and inflationary policies:

- Rising bond yields will make the USD stronger but increase Uncle Sam's debt burden.

- The Federal Reserve may have to resort to inflationary measures to save bond markets.

- This could weaken the USD's status as a world reserve currency.

5. BRICS nations recognize the threat of USD-dominated trade system:

- BRICS nations share a common enemy in the USD-driven international trade system.

- They may trust gold as a trade currency and seek to de-dollarize their alliances.

6. Survival of BRICS nations and a changing petrodollar system:

- BRICS nations need to escape rising USD-dominated debts to avoid becoming vassals of the US.

- China will eventually need a better plan than the petrodollar for oil purchases.

- Saudi Arabia's shift towards Shanghai could impact the petrodollar system and the USD's demand.

7. Other strategies the BRICS nations could employ:

- Dumping US Treasury bonds could raise USDs for BRICS nations and harm the US.

- The US's increasing debt puts downward pressure on bonds and upward cost pressure on yields.

- Adding US asset dumping to the mix would have a staggering impact on the US debt-based system.

8. US Trapped in a Vicious Circle of Debt:

- The US is now trapped in a vicious circle of debt, leading to a currency-destroying return to more artificial, QE “stimulus” and inflation.

- Yields, twin deficits, inflation, and debt-driven GDP growth are all on the rise, with limited options for Washington DC.

9. Impending Inflation and Dollar Depreciation:

- Unless spending is dramatically cut, Washington DC will resort to printing more fake money and causing real inflation, leading to a depreciating Dollar.

- Individuals can expect their wallets, checking accounts, and portfolios to be negatively impacted.

https://www.zerohedge.com/geopolitical/bad-really-bad