Crack up Boom coming
Think what you want about Russia and Putin but what they are doing is really smart. If you were being paid by someone who had a printing machine for dollars and saw they were running it 24hrs a day you would start to question the worth. Which is what Russia did since they were being paid in dollars for oil, and then converting the dollars into gold because they realized years ago to not hold dollars. They also realized the Gold price was being heavily suppressed and they have tons of gold.
The reason the US didnt want to quit buying oil from Russia was because they were getting it for free by printing money. Back in August of 1971 France did the same thing to US when Charles de Gaulle who complained about the "exorbitant privilege" of the US with its dollar hegemony. As we all know, de Gaulle demanded gold in exchange for France's US dollar FX surpluses and this outflow forced Nixon to close the gold window. Gold then went up 23 times its price. This time it was seen in the nickel market, which is still shut down, and now reversing trades after it went to 100,000.
Putin killed the dollar the markets just haven’t reacted yet. Investment companies like Blackrock have realized it and have quit buying stocks and are selling off more stocks daily than they have since the market crashed.
Russia is long commodities, long gold and doesn't need fiat currency. His debt to GDP ratio is low and taxes are low. If the world financial markets collapse on a relative basis, the position of Russia will be improved significantly. This is what I believe he is playing for. If investors do not recognize this they will be caught wrong footed as I believe many are today.
None of us own enough gold, real assets or commodities. Fiat currencies are going to fail spectacularly, and soon.
A crack-up boom is the crash of the credit and monetary system due to continual credit expansion and price increases that cannot be sustained long-term.
In the face of excessive credit expansion, consumers' inflation expectations accelerate to the point that money becomes worthless and the economic system crashes.
Hope for the best, plan for the rest
The reason the US didnt want to quit buying oil from Russia was because they were getting it for free by printing money. Back in August of 1971 France did the same thing to US when Charles de Gaulle who complained about the "exorbitant privilege" of the US with its dollar hegemony. As we all know, de Gaulle demanded gold in exchange for France's US dollar FX surpluses and this outflow forced Nixon to close the gold window. Gold then went up 23 times its price. This time it was seen in the nickel market, which is still shut down, and now reversing trades after it went to 100,000.
Putin killed the dollar the markets just haven’t reacted yet. Investment companies like Blackrock have realized it and have quit buying stocks and are selling off more stocks daily than they have since the market crashed.
Russia is long commodities, long gold and doesn't need fiat currency. His debt to GDP ratio is low and taxes are low. If the world financial markets collapse on a relative basis, the position of Russia will be improved significantly. This is what I believe he is playing for. If investors do not recognize this they will be caught wrong footed as I believe many are today.
None of us own enough gold, real assets or commodities. Fiat currencies are going to fail spectacularly, and soon.
A crack-up boom is the crash of the credit and monetary system due to continual credit expansion and price increases that cannot be sustained long-term.
In the face of excessive credit expansion, consumers' inflation expectations accelerate to the point that money becomes worthless and the economic system crashes.
Hope for the best, plan for the rest
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古灵精乖 微Becca_tst : So now both oil and gold will go up, right?
W Chiang : @Mcsnacks H Tupack check ur moomoo margin call level.
I just checked it.. while my current nlv is 19.2k they set my margin call level to 18.6k USD citing a blackbox formula which will not show to me.
This is ridiculous they could easily liquidate my position without warning.
Mcsnacks H TupackOP W Chiang: For stocks that are trading below $5, selling naked puts is done on a cash-secured basis in all accounts.
25% of the underlying stock’s market value + the option ask price – any out-of-the money amount) x 100 (per contract) x the number of contracts
Value must be greater than the number of contracts x $500 per contract
Mcsnacks H TupackOP 古灵精乖 微Becca_tst: Oil will. They are trying to hold gold down with naked shorting because if not then it enriches Russia.
W Chiang Mcsnacks H TupackOP: Oh i cleared all my shorts and no option. And my assets is about long term bluechips and inverse etf. Just very strange. I nver use margin but my whole cash
W Chiang Mcsnacks H TupackOP: I called their customer service and scold them for half hours. Fk they said it is system logic
Mcsnacks H TupackOP W Chiang: I was wondering. Because stock options is the only way it could happen. Unless it’s because moo positions have gotten close to being margin called.
W Chiang Mcsnacks H TupackOP: Idk tmrw then see whether system issue