U.S Dollar & Energy's Role In The "Debt Death Spiral" End Game | Luke Gromen
Inflection Point
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The Balance of Payments Problem for the United States
In the last nine years, global central banks have on net stopped buying treasuries. And so when that happened, you started having this Lucy and the Chocolates skit where the conveyor belt is still running with chocolates. They can't keep the treasury market from being dysfunctional, a word we've heard a lot in the last four years. That has been a fragile equilibrium as long as oil prices have stayed flat; US shale has helped that dramatically. With the spike in energy last year with the Russian sanctions,. that upset that fragile equilibrium where suddenly energy prices spiked. So now you've got incremental supply to add on top of the accelerated conveyor belt just from the US
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