An important reminder that everyone and their mother is currently long the US dollar.
Crowded positions are often mistaken, making a squeeze in the opposite direction highly likely.
While gold and commodities can indeed rise alongside a strengthening US dollar, this is an… pic.twitter.com/i5jGeeXDVU
— Otavio (Tavi) Costa (@TaviCosta) June 12, 2024
Deficit spending as a percentage of GDP is above World War 2 levels.
Total federal debt in the US is up over $11 trillion since the start of the pandemic.
Nothing about any of these numbers is "reasonable."
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) June 13, 2024
Western sovereign debt requires negative real rates to avoid nominal default.
Hoarding hard assets is a rational free market response, but if investors hoard productive commodities, inflation surges & billions suffer/starve.
Hoarding gold & BTC that "aren't used for anything" =… pic.twitter.com/UGi0zeIagS
— Luke Gromen (@LukeGromen) June 13, 2024