{"id":39406,"date":"2018-10-19T17:30:59","date_gmt":"2018-10-19T22:30:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39406"},"modified":"2018-10-19T17:30:59","modified_gmt":"2018-10-19T22:30:59","slug":"the-global-dollar-shortage-is-here-and-its-becoming-a-big-problem","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39406","title":{"rendered":"The Global Dollar Shortage is Here \u2013 And It\u2019s Becoming A Big Problem"},"content":{"rendered":"
\"\"<\/div>\n

The Global Dollar Shortage is Here \u2013 And It\u2019s Becoming A Big Problem<\/a><\/h3>\n

Another week and another signal flashing red to deal with. . .<\/p>\n

The credit market \u2013 in my opinion \u2013 is indicating an inevitable \u2018crunch\u2019 <\/em>coming up. And even worse \u2013 we\u2019re seeing the global dollar shortage deepening.<\/p>\n

Many readers know I haven\u2019t exactly been shy <\/em>about focusing on this dollar shortage problem all year \u2013 you can read more here<\/a>, and here<\/a>.<\/p>\n

Personally \u2013 I think this may be the trigger that kicks off a brutal, worldwide<\/em>, financial crisis. . .<\/p>\n

For instance \u2013 just look at what\u2019s happened with Emerging Markets because of a tightening Federal Reserve, a stronger dollar, and drying liquidity.<\/p>\n

Don\u2019t forget \u2013 a dollar shortage is synonymous<\/em> with disappearing liquidity. Which means we can expect more violent and sudden market crashes to occur \u2013 just like we saw last over the last two weeks<\/a>.<\/p>\n

Stock markets (and bond markets) around the world took big losses. The only thing that really outperformed was gold.<\/p>\n

The fear of rising \u2018real\u2019 <\/em>U.S. interest rates and slowing economic growth (especially from China) is making investors rethink their positions.<\/p>\n

Not to mention the cost of borrowing short-term dollars via LIBOR <\/a>(aka London Interbank Offered Rate) is indicating aggressive<\/em> financial tightening.<\/p>\n

Take a look at the 3-month U.S. dollar LIBOR rate \u2013 it just had its biggest<\/em> one day jump since late May.<\/p>\n

And even more startling \u2013 it\u2019s now at its highest level since 2008.<\/em><\/p>\n

\"\"
\nSo what does this mean?<\/em><\/p>\n

Well \u2013 it\u2019s indicating that the short-term borrowing of dollar denominated debt\u2019s getting very expensive. And investors \u2013 especially overseas \u2013 are finding it harder and costlier to get their hands-on U.S. dollars.<\/p>\n

This isn\u2019t a big surprise \u2013 but what\u2019s making me worried is just how<\/em> costly and scarce these dollars are becoming. . .<\/p>\n

Corporations worldwide borrowing dollars for business operations. And even ordinary citizens with mortgages and credit cards (which are mostly driven by LIBOR) will face higher interest payments.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

The Global Dollar Shortage is Here \u2013 And It\u2019s Becoming A Big Problem Another week and another signal flashing red to deal with. . . The credit market \u2013 in my opinion \u2013 is indicating an inevitable \u2018crunch\u2019 coming up. And even worse \u2013 we\u2019re seeing the global dollar shortage deepening. Many readers know I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[19913,21292,19915,839,4024],"class_list":["post-39406","post","type-post","status-publish","format-standard","hentry","category-economics","tag-adem-tumerkan","tag-dollar-shortage","tag-palisade-research","tag-us-dollar","tag-us-dollar-shortage"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39406"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39406\/revisions"}],"predecessor-version":[{"id":39407,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39406\/revisions\/39407"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}