Friday, August 4, 2023

In the #News #Politics #Debt #Economy

“If you don't read the newspaper, you're uninformed. If you read the newspaper, you're misinformed.”

“Whenever you find yourself on the side of the majority, it is time to reform (or pause and reflect).”

― Mark Twain

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The invisible hand doesn't care what Fitch says. The assumption that it (invisible hand) didn't recognize increasing sovereign debt default risks until there's downgrade (Fitch, Standard & Poors, or other) is fodder for social media social media desperate for clicks. The rally in the dollar, stock, and other markets are a function of capital flows and self-preservation.

The US government (and citizens) are irresponsible. There's no denying that. The majority still has yet to realize the impact of infinite debt and spending, but it won't be a de-dollarization into a BRIC currency in 2023. Consumer markets take time to build up, and global corporations need incentive to switch to a new currency. That incentive is not related to oil usage (petrol dollar narrative).

The last downgrade of US debt generated a decent sized decline in 2011. We must be prepared for anything, especially of price close below the important weekly reversal discussed in the Economy & Stock (E&S) Report. The line in the sand is not flexible. A close below it will generate further selling to the next reversal. Please contact us if you're not a subscriber to this important report.

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