If the direction of central bank liquidity influences asset prices, then it is central bank liquidity that also determines when cash is king and when cash is trash. Famous billionaire hedge fund investor Ray Dalio often refers to cash as trash, but cash can also be king. How often have you heard people lamenting being unable to participate in the bargains because they have no surplus spending money? So when money is tight, bargains...
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Central Bank Digital Currency (CBDC) is gaining momentum, according to the results of 2021. BIS survey on central bank digital currencies,published in May noted that more than a quarter of central banks are developing or running concept pilot plots. The BIS paper consisted of 81 central banks surveyed, which concluded that CBDC is gaining momentum due to several factors The pandemic has spurred demand for contactless digital...
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Global income inequality is on the rise after making decades of progress, and it is now emerging that the pandemic lockdowns have affected the poorest people in society the most. Moreover, the war in Europe is adding to supply chain problems for soft commodities and energy, which is fueling a cost of living crisis where the burden is felt the most by those scraping a living. So global income inequality and rising homelessness, and...
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What follows the everything bubble is the crash of everything in what has now become uninvestable markets. The first quarter of 2022 has been a bloodbath for investors with no safe haven places to hide. Many have allocated 60% of their portfolio in cash, US dollars, since the first quarter of 2022. As we noted in our top trends for 2022, the US dollar would outperform all other currencies in 2022. Our rationale for believing that...
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When will shrinking demand in the economy put pressure on monetary policymakers to revert to easing? The bond market rout sent the 10-year treasury yield to almost 3%, which jumped 120 basis points since January. Rising treasury yields, particularly the 10-year treasury, is a big deal because this debt instrument is a yardstick for setting interest rates for home mortgages and car loans. So the rising 10-year treasury yields increase...
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They are young, entrepreneurial, looking for cheap cross-border transaction solutions and an exit from failing fiat currencies, and they are increasingly pivoting to cryptocurrencies. Technologically savvy smartphone generation who have grown up in the digital age, many are economically active in the global digital village voted their preference of what future money will be, and it increasingly looks like cryptocurrencies....
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