Nostra, House of Dumbass

Nostra, House of Dumbass



Everyone is on the "dollar wrecking ball" train. They all think the dollar is going to the moon and use a flawed metric, the $DXY, to justify it. I don't know which group is dumber, the USD bulls or the bond bulls? There is significant overlap between the 2 groups. 👇👇👇

I want you to make a list of all these accounts/people who are promoting the "dollar milkshake theory" In the next 6-18 months you'll find out firsthand why the vast majority of funds underperform an index. It's groupthink with a lemming mentality.

These "experts" are economically illiterate who espouse false Keynesian talking points. Every time I hear someone talk about the dollar milkshake theory, I get dumber. I lose IQ points. Dollar Milkshake Theory is truly the dumbest thing I have ever heard.

I'm seeing a lot of similarity in the meme stocks, $AMC, $GME, etc. and the dollar bulls. Their rationale is the same, devoid of logic and fundamentals. & ironically the milkshake people will tell you it's a dollar squeeze! There is a dollar shortage! Everyone wants USD! LOL

They actually believe countries like Japan & China will take US Treasuries to the grave before they sell them to support their own currency. Burger King comes to mind. When it comes to the Eurodollar, they have an elementary understanding of it. 👇

They don't understand the concept of a loan being denominated in USD but paid in local currency. They don't understand the concept of a default.

The same arguments were made in the 2008 housing crisis. When people default & their houses go on the market, supply increases. When the economy is in recession, demand decreases. Therefore you have demand shifting to the left and supply shifting to the right simultaneously.

Same thing is/will happen to the dollar. The demand for USD will decrease at the same time supply is increasing. Worst case scenario for the US. They talk about the US "weaponizing" the dollar but they don't talk about other countries also weaponizing the dollar (China, SA).

China holds 2 financial nuclear bombs they can drop 1 on the US Treasury market & another 1 on the US economy. The Saudis hold the petrodollar nuclear bomb.

The $DXY topped at around $110 & overshot to $114. Can it go a little higher? sure But if you think the $DXY is going to 150, you need your head checked. I'm telling you all this while $DXY is sitting at ~$113 near the top.

If you're buying US Treasuries because you think 4%-4.5% yield is a "deal", you will be steamrolled. -50% loss from here is conservative. There is a lot of pain in your future.

I know this thread will not be popular because I'm an island surrounded by sheep. 99% of you are dollar bulls. I also used the "dumb" word which will irk many. I hate using euphemisms. Call it what it is, stupidity. I expect to receive countless flak.

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