Loading ...US Dollar Shortage
Lebanese currency falling so fast… groceries wont even open to sell goods! Implosion. Imagine gold expressed in Lebanese pound.
They blame US dollar shortage… and impeding stock market crash. They are correct. When Lebanon is out of crisis.. then we could say no more US dollar shortage…
Unless FED bails out the rest planet… a shit storm will hit the entire planet.
This will never happen in USA as it is the reserve currency… makes me wonder if its a fools game to go long xauusd?
Well since my base currency is cad… its all good as I’ll be converting those usd back in cad (as a non reserve currency should fall vs usd) when I close my gold trade.
The usd might not be at equilibrium… (ie dxy ~80) but thinking gold expressed in the reserve currency will go to inifinite is a dream that should be shattered as a fast as possible.
Scenario I’m imagining… is current FED policy not aggressive enough… and markets fail once again… and a real drop… like full retacement to 2008 lows.
Then fed goes in OVERDRIVE. Balance sheet of +100 trillion! Then maybe we got a shot at 6k gold.
I have family Lebanon. I’ll try get some news today.
https://twitter.com/AliTahmizian/status/1254839996453969922?s=19
Interesting Patrick. Gold is up about 15% in Lebanese pounds in the last 6 months, but it’s up 20% in US Dollars !
The offical peg is bust. And they will adapt it to the real value. I now remember my father telling me why everybody wants to deal in USD in Lebanon.. the peg is not reflecting the true USD shortage. https://lirarate.com/
Zoom out on the chart in the link.. and a hockey stick is in progress. Hyper inflation in Lebanon in progress. Market value is like 4200 lebanese pounds vs USD… far from peg.
I havent look at the gold chart. They had a peg to usd at 1500 Lebanese pounds for a long time.. and I think just recently they arent able to hold it. So the chart should be almost the same except for the most recent period. Gonna look at one now.
2592263 Lebanese Pounds for an ounce of gold (2.59 million)
Yeah, thats with the offical peg value of 1500 LBP. Use 4200 LBP.. you get 7 182 000 !!!!
Not sure if this is important.. but Lebanon has one of the highest gold reserves per capita in the world.