In The News Today

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Bill Holter’s Commentary

This is exactly what Jim said several years ago.

Putin Warns U.S. May Regret Using Dollar as Sanctions Weapon
June 5, 2021

President Vladimir Putin said Russia doesn’t want to stop using the dollar as he accused the U.S. of exploiting the currency’s dominance for sanctions and warned the policy may rebound on Washington.

Russia has to adopt other payment methods because the U.S. “uses its national currency for various kinds of sanctions,” Putin said late Friday in St. Petersburg at a videoconference with representatives of international media organizations. “We don’t do this deliberately, we are forced to do it.”

Settlements in national currencies with other countries in areas such as defense sales and reductions in foreign-exchange reserves held in dollars eventually will damage the U.S. as the greenback’s dominance declines, Putin said. “Why do U.S. political authorities do this? They’re sawing the branch on which they sit,” he said.

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Bill Holter’s Commentary

Money supply has exploded while velocity crashed to all time lows. What do you think things will look like once the mass exodus from dollars begins in earnest and velocity lifts off? Please note the chart of gold during the Weimar experience…

Charts For A Crazy World: Hot Money Spawns Weird Trends
June 6, 2021

This is a time of almost supernaturally-easy money. US financial conditions, in fact, have never been this accommodative, which is why junk bonds, CLOs, NTFs, cryptos, and meme stocks have been able to attract so much hot money.

US-financial-conditions

But the velocity of money – i.e., how often a given dollar is spent in a given span of time – has cratered. Consumers, it seems, aren’t nearly as enthusiastic as speculators.

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