Get started

Z-VALUE

General Electric AnalysisGeneral Electric, the old behemoth of the American Industry. Since 2016, half the time GE ended a year with negative profit. At other times profits were less than 8%, all combined, not very good, to say the least. But, from 2019 to 2022, GE has aggressively reduced its massive debt. Although a drop in equity occurred as well, the debt reduction was more significant with debt/equity dropping from 3.34 to 0.96, year after year. Exceptional. It seems something like this would require major restructuring and a highly disciplined business practice, which is a great feat in and of itself considering the depth of business abyss GE was dealing with. Even though there is a long way to go to steady income and healthy finances, I am looking forward to the next chapter of this great giant. It will, I'm sure, at least bring us a lot of good business excitement, and possibly, the ever so thrilling story of rags to riches - again. Have a Great Day.
NYSE:GE
by vmaksimovic
DISH Network AnalysisThis stock is dirt cheap. But is it undervalued ? For the past seven years, Dish has maintained a profit margin between 10% and 14%. And for the same period, they managed to grow equity from 5B to 18B dollars. Very good. But, at the same time, the lowest debt/equity was 1.15 in 2020, which is too high. All the other years it was higher, with the highest 3.57 in 2016. They managed their cash well, except in 2022 when free cash flow went negative, which probably means more debt to come. All in all, with their debt going up and down, it's as if they're on a rollercoaster of leverage. Dish has decent margins, but I think they need far bigger chunk of their revenue to get their debt under control. To make things trickier, Dish's price ratios such as price/earnings and price/sales are at historic lows, which is usually an indicator of undervaluation, but is it valid in this case ? Honestly, it's hard to say. With all the company's struggles, the most appropriate answer would be - I don't know.
D
by vmaksimovic
Regions Financial AnalysisThis is a fantastic company. High, stable and consistent profit margin standing at 25%, on average, per year, for the past 7 years, seems to be the pillar of performance for this banking services provider. Second stellar attribute is its ability to control debt and cash. Since 2018 to present, Regions has managed to aggressively eliminate debt, making its Debt/Equity drop from 0.94 to 0.18, making it a very healthy company running on equity rather than debt. Also, over the same period it manages to keep its equity stable at around 15B$. Since 2016, the company has very good control of its cash, keeping its cash on hand(free cash flow) always at or above the level of net earnings for the year. Currently, company's cash on hand can cover its debt in full. All this, healthy finances and consistently high profit margins, makes Regions an outstanding company. Considering its 10 year low PE, which was around 6.3 and its current PE which is 6.8, it is safe to say that at 16$ per share, with this kind of business performance, Regions is a good investment. Have a great day.
NYSE:RFLong
by vmaksimovic
DXY: BRICS Creating New Reserve CurrencyHi Traders, Investors and Speculators of the Charts 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. For the past eight decades, the U.S. dollar has been the dominant global currency following the Second World War. It has been widely accepted worldwide, with only a few exceptions, and is commonly recognized by the image of Andrew Jackson and the seal of the U.S. Treasury, making it the most recognizable export of the United States. The U.S. dollar became the reserve currency of the world following the Second World War, mainly because the United States was the dominant global economic and military power at the time. The Bretton Woods Agreement of 1944 also played a crucial role in establishing the dollar's role as the world's reserve currency. Under this agreement, other countries agreed to peg their currencies to the U.S. dollar, which was backed by gold. This made the U.S. dollar a stable and reliable currency for international transactions, leading to its widespread acceptance as a reserve currency. Additionally, the U.S. had a large trade surplus, making it easier for other countries to hold dollars as reserves to pay for U.S. goods and services. The dominance of the U.S. dollar as the world's reserve currency has been a source of both admiration and resentment among other countries and superpowers. Many countries have benefited from the stability and liquidity that the U.S. dollar provides as a reserve currency, allowing them to conduct international trade and investments with greater ease. However, some countries have also experienced the negative effects of dollar dominance, such as the risk of currency fluctuations and the potential for U.S. monetary policy decisions to have spillover effects on their own economies. The U.S. dollar was not only commonly used in international transactions but also widely held as a long-term store of value across the globe. Central banks worldwide held more U.S. dollars than any other currency. This resulted in low borrowing costs for Americans , which allowed middle-class people to buy homes. Furthermore, the U.S. government was able to incur significant debts without apparent consequences due to the dollar's global dominance. Americans may not have been aware of this situation, but it had a favorable impact on their daily lives. Occasionally, the Congress discussed the debt ceiling, but it seemed like an abstract topic that most people did not care about since America controlled the global reserve currency and could print U.S. dollars. This privilege made money cheap, and Americans enjoyed benefits that were not available to other countries. However, the thought of losing this dominance was too terrible to contemplate, and concerns began to arise around the time the Russian military entered Ukraine about a year ago. The consequences of such a loss would be dire, and it was a worrisome issue. The Russian military's invasion of Ukraine was destabilizing, as wars typically are. However, it was the West's reaction to the invasion that raised concerns. U.S. policymakers, led by USA President Joe Biden and supported by Republican senators, seemed intent on not only toppling the Russian government but also disrupting the post-World War II economic order that had benefitted the U.S. for decades. The sanctions weren't expected to harm the U.S. economy more than the Russian economy. Russia's economy is not heavily reliant on financial services but on natural resources such as oil, gas, iron, and coal . Despite the sanctions imposed on Russia, its Ruble remains stable against the US dollar, which suggests that the sanctions did not have a significant long-term impact on Russia's economy. The seizure of Russia's central bank's dollar reserves was intended to collapse Russia's credit system and cause bank runs, but it didn't happen. The USA did not consider the dangers when using the dollar, the sign of security and unity, as a weapon. The result of this is unsurprising, many countries lost confidence in the dollar. And so, Russia, Brazil, Pakistan, India, Malaysia, France, China, and Saudi Arabia are conducting business in currencies other than the US dollar, such as the Chinese currency Yuan. This is happening at a fast pace and shutting out the US dollar, which is losing trust from other countries due to its use as a weapon and excessive printing, leading to inflation and currency devaluation. 💭Final Thoughts 💭 We look to history to speculate on the future. As the saying goes, history repeats itself. During the First World War, the German government borrowed heavily to finance the war effort, resulting in a significant increase in national debt. The government continued to print money to pay for its expenses, which led to hyperinflation and a collapse of the German economy in the early 1920s. In 1923, the German mark was practically worthless, and people had to carry wheelbarrows of money to buy basic goods. This hyperinflation had a devastating effect on the German people, wiping out their savings and pensions and causing widespread poverty and social unrest. The situation stabilized when the German government introduced a new currency, the Rentenmark, backed by mortgages on agricultural and industrial land which restored some degree of confidence in the currency. The German government basically inflated their currency due to excessive debt accumulated from war. The United States has a similar history with wars, relying on the reserve currency status to recover from the economic damage of these wars. However, considering the large economical impact of Russia and BRICS's contribution the the economy, it could be catastrophic due to the current state of the US economy. The BRICS nations (Brazil, Russia, India, China, and South Africa) are exploring the possibility of creating a new reserve currency as an alternative to the US dollar-dominated international financial system. The proposal was discussed at a virtual meeting of the BRICS finance ministers and central bank governors, with a goal to decrease the dependency on the US dollar and increase trade between member countries. However, no specific details were provided yet about the potential reserve currency. _______________________ 📢 Show us some LOVE 🧡 Follow for daily updates and trade ideas on Crypto , Stocks , Forex and Commodities 💎 We thank you for your support ! CryptoCheck
TVC:DXYShort
by CryptoCheck-
53
Hitting LowsATSG is sitting right now at the $15 price point which we have not seen it trade around since back in March of 2020. With price back at this low range, analyst are still holding their price valuations of around $22-$27 making this a favorable target for long term portfolio growth. The last two earning reports were more on the negative side although the company has shown before its ability to be able to generate revenue historically. Having hit highs of just under $35 at the start of the year we can start to see where the peaks and valleys of this range will be.
NASDAQ:ATSGLong
by AirMarketGroup
More testing for LiliumAlthough sadden to hear that lilium is no longer entering the market in central Florida it is exciting to see their continued growth and testing for developing a quality product. With shares hitting the low of about .38 price is now moving up towards $1 at a quite rapid pace. Although there are still many hurdles in the US for this technology. Other country may not be as slow to adopt this growing method of travel. Options trading may be limited although as confidence in the product rises the narrative may change.
LLong
by AirMarketGroup
A nice setup this is playing out to bePlease provide a meaningful and detailed description of your analysis and prediction. Walk us through your thought process. Put yourself in the reader’s shoes and see if you would understand the context based on what you wrote. Clearly stated profit targets and stop loss areas help clarify any trade idea. A cup and handle formation. Appears poised for the return trip up to the 12 dollar range. Take some profits (10-75%) and hang on for the ride to the moon. Hopefully get off before stop-lossing at 2019 low.
TSX:EQXLong
by rockcharts_
1
Shadow Banking The shadow banking system is something you're probably not familiar with. Until today! the shadow banking system is made up of mainly investment banks i.e. your market whales or market makers, money market funds i.e. like schwab and vanguard, and hedge funds. these financial entities dont give out loans to you or I, but rather trade amongst themselves. which is what is known as the shadow banking system. one of the main functions of the Shadow Banking system is to provide liquidity aka money (which is mostly made up anyways) to the financial system. for example if a whale wants to move a massive amount of money into a position, or what happened to Zimbabwe a while back and give an entire nation a loan at a ridiculous amount of interest they're able to do so, or take a massive position in a promising opportunity and need capital fast! How does this work? How do you ensure that a hedge fund will pay back on their loan? collateral! Usually in the form of government issued bonds and bills. one can trade an equilivent amount of t-bills plus interest for X-amount of dollars to carry out said transaction. example: Hedge fund A wants to take a position shorting the RMBS market. (strictly coincidental) Hedge Fund A is so confident in their analysis they are willing to take a whales position. they need the capital. well like all good risk management practices they have off set their high beta shares with low risk positions. the lowest risk investment you can have is a US Bond or Treasury Bill. So, Investment bank A says okay I can lend you 10 Billion Dollars at a 4% interest rate per day for 3 days, if you default I keep your Bonds. The swap happens. Now, Hedge Fund A has not only to make their money back on the bond trade, but they have to make at least 4.01% to make the trade profitable and they have 3 days to do it. Another way this can be done is Hedge Fund B says I too am going to short the RMBS market but i am going to offer it to all the investment banks and other hedge funds. So they offer it as an investment opportunity. the offering fund takes a small fee and the winnings or losings are dealt accordingly. while this might sound a a little familiar... well it is! names and places have been changed to protect the innocent. The major critique the financial system has with this Shadow Banking is that its not really regulated. becasue going back to our example with Hedge Fund A If Hedge Fund A Doesnt pay then Investment Bank A can shoot their interest rate from 4% to 40% in one day making the loan almost impossible to pay back causing the Hedge Fund to collapse and all the unsuspecting investors in the Hedge Fund are out of pocket. Or my personal favorite. Lets Say Hedge Fund (HFA) A is going to short the RMBS market with a 10 Billion dollar Position for 3 days and Investment Bank A (IBA) wants to short the CMBS market with a $20 billion position for 5 days. well the trade between HFA and IBA happens 10 billion will float to HFA at a 4% interest rate per day for 3 days. Now, IBA wants to short CMBSs they will approach Life Insurance Group A (LIA) and will offer $20 billion dollars in bonds 10 from their reserve and the 10 billion from HFA. at a 5% per day interest rate for 5 days. Now, you might see the problem. but i will continue. Day 3 is up. HFA made their little profit. IBA doesnt have their bonds (because theyre with LIA). So, IBA will probably give HFA 10 billion of their own bonds which for this post is what happens. HFA is squared away with IBA. Now, in the 5 days that IBA is holding LIAs money the fed decided to raise interest rates 200 base points. the bond market yields sky rocket causing their prices to plummet. but fortunately IBA made 10% on their risk they pay LIA their 5% interest and take a 5% loss on their bonds and come out BE or Break even. As you can see in this overly simplified example how if any one part of these parties failed it could be detrimental for a lot of people. Because peoples pensions are held by hedge funds, countries and other governments have their investments with the Investment Bank peoples money and loans are held with the Life Insurance groups. I believe this shadow banking system is also the Stock Markets (yes the entire stock markets) Stop Loss!
K
by ARegularGuy
Decisive Battle Fed Interest Rate ResolutionThere are still 2 hours before the announcement of the Fed's interest rate decision. At that time, it will guide the direction of gold in the short term, and all we have to do is seize the market trading opportunity. As long as we seize the opportunity, we will make a very good profit.Let's see if Gold will use this opportunity to challenge the 2050 position again.I will announce more detailed market information and trading opportunities in the channel. Are you ready for the decisive battle over the Fed's interest rate decision?
OANDA:XAUUSDLong
by Short-term-king
XAUUSD:Short gold decisivelyGold currently continues to maintain a range fluctuation on the daily line, and the price is temporarily compressed between 1970-2010. In terms of the overall trend, the market is slightly restrained before facing important data such as the Federal Reserve's interest rate decision and non-farm payrolls.Therefore, in the short-term structural trend, gold shuttles back and forth around 2000 points. In the near future, the watershed of long- and short-term strength and weakness will pay attention to the 2010 mark, and the daily line level will continue to be bearish below this position. So wait patiently for a reliable position to participate in shorting gold.As for the specific location of participating in shorting gold, I will announce my trading signals on the channel as soon as possible when the opportunity is right. Please pay attention to the information in the channel.
OANDA:XAUUSDShort
by Short-term-king
8
First choose to short goldYesterday, stimulated by the news, gold rose sharply in the short term, reaching as high as near the first line of 2020. At present, gold has fallen slightly and is trading at the 2016 level. Gold has shown serious technical deviations due to the stimulus of the news, and there is a technical response demand; and it is about to face the Fed's interest rate decision. In principle, gold has a certain volatility within a few days before the announcement of the interest rate decision. On the whole, due to the cautious attitude of the market, it is still necessary to maintain a state of range consolidation as a whole, so gold has a demand to fall after the news calms down. So gold can consider choosing to sell on the first line of 2018-2010, TP1:2010, TP2:2006. For more high-quality trading signals, please refer to the content in the channel
OANDA:XAUUSDShort
by Short-term-king
Bitcoin Dominance Analysis According to the data of Bitcoin Dominance chart, it can be seen that it is placed between two support and resistance levels (blue and red areas). My personal opinion: According to the analysis of liquidity in the market (link below) We will have the growth of Bitcoin dominance and this shows that the growth of the price of Bitcoin will come with it. Of course, I must mention that because we will not have a significant growth of liquidity in the market, the expectation is a temporary growth of Bitcoin and then the distribution of liquidity to altcoins. The point that is very important is that it should be considered that the price of altcoins will decrease, and after the growth of the price of Bitcoin, Dominance will decrease and the traders will save profit and then enter the resulting profit into altcoins. do
CRYPTOCAP:BTC.D
by ExduS021
Gold Prices Are Back Lower. Are Your Trades Alright?Hello ladies and gentlemen, it is a pleasure to meet you here. I have been trading in gold, crude oil, foreign exchange, cryptocurrency, etc. for more than 13 years. Just like my name, we are the children of the ocean, and the future will be You show me how to use technical indicators to analyze the movement of trends. It is expected that the return will reach about 300% next week. The U.S. dollar edged higher against major currencies on Friday, April 22 (Saturday), as business activity data showed that the world's largest economy remained resilient, supporting expectations that the Federal Reserve will raise interest rates by another 25 basis points at its policy meeting next month. Gold prices slumped and headed for their worst week in eight, while oil prices posted weekly losses. Commodity close: U.S. gold futures settled down 1.4 percent at HKEX:1 ,990.50. Brent crude futures rose 56 cents to settle at $81.66 a barrel. U.S. crude was up 5 cents at $77.87. U.S. stocks closed: the Dow Jones Industrial Average rose 0.07% to 33808.96; the S&P 500 rose 0.09% to 4133.52; the Nasdaq rose 0.11% to 12072.46. Gold prices have fallen about 1.2% so far this week, pressured by a broader rise in the U.S. dollar, with Fed officials saying on Thursday that inflation remains "well above" the Fed's 2% target. Fed Governor Bowman reiterated that more needs to be done to curb inflation. U.S. business activity accelerated to an 11-month high in April, an S&P global survey showed, at odds with growing signs that the economy could slip into recession as interest rates rise and demand cools. Gold is also under pressure as a result. The market currently sees an 85.4% chance that the Fed will raise interest rates by 25 basis points at its May 2-3 meeting. Gold is expected to trend lower in May if the U.S. dollar raises interest rates at the May 2-3 meeting. Finally, I will give you a personal summary: Generally speaking, people who like to chase up can make money, and they will tend to repeat the action of chasing up again. When this action is repeated and more or more money is made, it will affect the people around them, and they even complain about the lack of positions. mentality, so that the market is gradually pushed to a climax until this profit-making effect comes to an end, and if those who chase the rise start to lose money, they will feel self-punishing and tend to be cautious in their operations, which is reflected in the disk The above is a gradual decline in activity. Similarly, there are also a group of people who like to buy bottoms in the market. If they can make money by buying bottoms, they will continue to buy bottoms. Punish the mind, and reduce the actions of bottom-hunting in operations. Once the number of bottom-hunting people starts to decrease, some stocks will fall without resistance after a little selling pressure. Finally, I wish you all a happy weekend, and it is a pleasure to share knowledge with you.
OANDA:XAUUSDShort
by Orca_Jimme
5
Will gold reverse on the way down?Will gold continue to fall to 1950 next? First of all, what I want to explain is that gold as a whole is still weak, but it cannot be directly shorted in trading. The reasons are as follows: From the continuous closing of the lower hatching line at 1970 in the recent trading days, it can be seen that gold is currently receiving technical support at 1970, so gold may take this weak rebound. So which areas are mainly observed above? 1.First observe the 1988-1992 area 2.Secondly, observe the 2000-2004 area If these two regions can recover quickly in the short term, then gold may reverse its decline and there is a possibility of challenging the previous high again.It is also worth noting that don't just pay attention to integer thresholds and avoid the pitfalls of technical false breakthroughs. In addition, in this week's trading, we have achieved a record of consecutive wins and zero losses. Starting tomorrow, our revenue target for this week is 300%. Remember to pay attention to and follow the detailed trading signals in the channel. I am also very happy to make more profits with you.In addition, for the recent ups and downs of the market, over and over again, and frequent long and short conversions, there may be many friends in the trading, back and forth continuous loss orders.So whether it's a friend who has a trading order quilt, or a friend who has recently lost money in a row, I have the real strength to help you solve the quilt, or satisfy your desire to make money. Welcome everyone to visit the channel!
OANDA:XAUUSDShort
by Short-term-king
1
BBBY Possible Double Bottom FormingPossible double bottom forming on the 30 minute chart. .27 Showing some strong support now. Green box possible target price range for a break after the double bottom. Orange boxes are gaps on the daily chart, could get some pops up to close those gaps. All gaps down below have been closed, and the recent move to the downside could've been to close the gaps (aside from stock being shorted to hell). .55-.6, and then .95-1.05 going to be another big gap to really get some momentum going. .81 is where the downtrend started so that will hopefully be stop number 2. Gotta get past .5 first and power through. Not quiet like GME squeeze just yet, we do not have stimulus checks coming in, BBBY is also not talked on WSB until it surpasses the necessary market cap. Other reddiots and YouTubers fighting blah blah blah blah Still awaiting Earnings. Possible Reverse stock spilt, and possible dilution from all the crazy deals going on. Special meeting coming up may 9 2023, we shall see if we make it to that date. Apparently BBBY is 5 days away from declaring BK if things do not change. Funny thing is the green vertical line is when im hopeful for a move up, happens to be just before the meeting. None of this is financial advice. Do your own research, these are my speculations and opinions, and if this goes south I am aware I can and or will lose the total notational value of my trade. I hold call options of BBBY, and 2000 shares. I have been in and out of BBBY since August, and it's been a gnarly ride. My tinfoil has gone through the microwave now, and I'll see where my bag takes me.
NASDAQ:BBBYLong
by rrak279067200
Gold between fires! This week's close will be decisive for gold and be prepared for volatility. The forecast for gold that was posted on my channel continues to be implemented. Let me remind you that gold looks good in the short term, BUT In medium and long term, gold will grow. This is because gold is highly correlated with 10-year US bonds and the dollar index. And in these assets, the main panic has already passed (or will end in the coming months). Therefore, if you want to short gold, then do it only with a stop! I predict the maximum fall limit for gold at $1700-1800. I will be buying gold big at these levels Write in the comments what other asset to analyze according to technical analysis
GLong
by Dorado_Crypto
Has gold stopped its decline and is it about to rebound?After the news was suddenly bearish last Friday, the market bulls initiated a multiples sell-off. On the one hand, it was due to technical overbought and divergence reasons, on the other hand, it was because of market sentiment taking the opportunity to hype. Judging from the current trend of gold, the intraday trend is still biased towards the correction trend after the decline. After the correction, there is still an expectation of continued decline, because the technical daily divergence has just been released, and the probability of the market continuing to decline in the later period has also increased.Therefore, in the short term, we need to pay attention to the strength of the rebound and the expectation of the second downward trend.In the short term, gold can first observe the defensive situation of the 20-day line. This position has also become a short-term reference point. If the 20-day line is lost, it may be possible to retreat below the intersection of the two trend lines in the early stage near 1970. From an intraday perspective, the current downward trend is stopped and there is a weak rebound trend, but it does not mean a change of direction. Therefore, the short-term structure is still a weak link after the sharp drop, and there is still a possibility of a sustained decline under the pressure of the intraday rebound. I will share specific transactions and operations in real time on my channel based on intraday details.In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
OANDA:XAUUSDShort
by Short-term-king
DXY: CBDC's Total Takeover? 🏛Hi Traders, Investors and Speculators of the Charts 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. For the past eight decades, the U.S. dollar has been the dominant global currency following the Second World War. It has been widely accepted worldwide, with only a few exceptions, and is commonly recognized by the image of Andrew Jackson and the seal of the U.S. Treasury, making it the most recognizable export of the United States. The U.S. dollar became the reserve currency of the world following the Second World War, mainly because the United States was the dominant global economic and military power at the time. The Bretton Woods Agreement of 1944 also played a crucial role in establishing the dollar's role as the world's reserve currency. Under this agreement, other countries agreed to peg their currencies to the U.S. dollar, which was backed by gold. This made the U.S. dollar a stable and reliable currency for international transactions, leading to its widespread acceptance as a reserve currency. Additionally, the U.S. had a large trade surplus, making it easier for other countries to hold dollars as reserves to pay for U.S. goods and services. The dominance of the U.S. dollar as the world's reserve currency has been a source of both admiration and resentment among other countries and superpowers. Many countries have benefited from the stability and liquidity that the U.S. dollar provides as a reserve currency, allowing them to conduct international trade and investments with greater ease. However, some countries have also experienced the negative effects of dollar dominance, such as the risk of currency fluctuations and the potential for U.S. monetary policy decisions to have spillover effects on their own economies. The U.S. dollar was not only commonly used in international transactions but also widely held as a long-term store of value across the globe. Central banks worldwide held more U.S. dollars than any other currency. This resulted in low borrowing costs for Americans, which allowed middle-class people to buy homes. Furthermore, the U.S. government was able to incur significant debts without apparent consequences due to the dollar's global dominance. Americans may not have been aware of this situation, but it had a favorable impact on their daily lives. Occasionally, the Congress discussed the debt ceiling, but it seemed like an abstract topic that most people did not care about since America controlled the global reserve currency and could print U.S. dollars. This privilege made money cheap, and Americans enjoyed benefits that were not available to other countries. However, the thought of losing this dominance was too terrible to contemplate, and concerns began to arise around the time the Russian military entered Ukraine about a year ago. The consequences of such a loss would be dire, and it was a worrisome issue. The Russian military's invasion of Ukraine was destabilizing, as wars typically are. However, it was the West's reaction to the invasion that raised concerns. U.S. policymakers, led by USA President Joe Biden and supported by Republican senators, seemed intent on not only toppling the Russian government but also disrupting the post-World War II economic order that had benefitted the U.S. for decades. The sanctions weren't expected to harm the U.S. economy more than the Russian economy. Russia's economy is not heavily reliant on financial services but on natural resources such as oil, gas, iron, and coal. Despite the sanctions imposed on Russia, its Ruble remains stable against the US dollar, which suggests that the sanctions did not have a significant long-term impact on Russia's economy. The seizure of Russia's central bank's dollar reserves was intended to collapse Russia's credit system and cause bank runs, but it didn't happen. The USA did not consider the dangers when using the dollar, the sign of security and unity, as a weapon. The result of this is unsurprising, many countries lost confidence in the dollar. And so, Russia, Brazil, Pakistan, India, Malaysia, France, China, and Saudi Arabia are conducting business in currencies other than the US dollar, such as the Chinese currency Yuan. This is happening at a fast pace and shutting out the US dollar, which is losing trust from other countries due to its use as a weapon and excessive printing, leading to inflation and currency devaluation. 💭Final Thoughts 💭 We look to history to speculate on the future. As the saying goes, history repeats itself. During the First World War, the German government borrowed heavily to finance the war effort, resulting in a significant increase in national debt. The government continued to print money to pay for its expenses, which led to hyperinflation and a collapse of the German economy in the early 1920s. In 1923, the German mark was practically worthless, and people had to carry wheelbarrows of money to buy basic goods. This hyperinflation had a devastating effect on the German people, wiping out their savings and pensions and causing widespread poverty and social unrest. The situation stabilized when the German government introduced a new currency, the Rentenmark, backed by mortgages on agricultural and industrial land which restored some degree of confidence in the currency. The German government basically inflated their currency due to excessive debt accumulated from war. The United States has a similar history with wars, relying on the reserve currency status to recover from the economic damage of these wars. However, considering the large economical impact of Russia and BRICS's contribution the the economy, it could be catastrophic due to the current state of the US economy. The BRICS nations (Brazil, Russia, India, China, and South Africa) are exploring the possibility of creating a new reserve currency as an alternative to the US dollar-dominated international financial system. The proposal was discussed at a virtual meeting of the BRICS finance ministers and central bank governors, with a goal to decrease the dependency on the US dollar and increase trade between member countries. However, no specific details were provided yet about the potential reserve currency. However, it's highly likely that this "new reserve" will be in digital form, as a CBDC (central bank digital currency). _______________________ 📢 Show us some LOVE 🧡 Follow for daily updates and trade ideas on Crypto , Stocks , Forex and Commodities 💎 We thank you for your support ! CryptoCheck
TVC:DXYShort
by CryptoCheck-
13