Global demand for dollars INCREASES during the end of a currency regime, because the whole system delevers and all these foreign countries need to pay off their debt. Remember most foreign countries have their debt denominated in dollars.
So they will sell treasuries and US equities in order to get dollars. And most of all their own currencies.
The dollar will scream higher on foreign exchange, while everything else falls. It is a strange world.
Basically, the Fed will have to eventually decide if they want to save the Eurodollar system and by extension, foreign countries from seeing their currencies collapse vs the dollar.
They will have to re-run Plaza Accords (G7 agreement from 1985) to devalue the dollar.
All roads lead to more money printing which = inflation.
Then.... The Fed Stopped Buying MBS 7 days ago. The purpose of MBS purchases was to repress mortgage rates and inflate home prices. That process has already started to reverse over a week ago. TA:DR **October **20th the last MBS trade will settle with The Fed. What happens between now and then? We shall see.
In a dollar endgame, the collapse begins at the periphery and moves to the core.
The first dominoes begin to fall...
Then the stock market is also showing signs of BIG trouble..... the VIX has officially hit 30 again. We’re officially in “large volatility resulting from increased uncertainty, risk, and investor fear”. Looks like it will be a RED OCTOBER in the markets.
At the same time... from the FTX president AMA: They want to "set up a regulated exchange in the US that is able to offer security tokens..."
Tokenized securities are coming. A new stock market with stocks as NFTs. This ends most fraud / loopholes being used in the current system and with virtually no need for gov oversite / regulation besides just the rules / regulations they want programed in. This takes a HUGE amount of power from corrupt institutions.
FTX is working with GameStop and LoopRing (LRC)
Rumor is OCTOBER launch on that.
All this seems to be coming together at the same time.... almost like there was a plan to blow up the old system and replace it with something better.
For those that don't understand NFTs or what tokenized securities / assets means check out this post I made a while back:
The revolution will be tokenized. (Why the MSM trashes NFTs so hard) Game Stop = Game Over!
Regulations as in parameters that the market itself can work in. Like no naked shorting. No PFOF (Payment For Order Flow) No delaying trades. No loaning out stocks without approval from the owner. No dark pools where your trades don't effect the price. Rules that some are in place but are rarely enforces and when they are it's a fine that is always less than the profit the company made breaking it. This stops it fully.
It also could give powers and abilities to companies to not only interact with their investors directly, but also limit their stock sales to only US citizens for example to avoid foreign influence.
It also eliminates the need for brokers and many institutions. You could trade directly from your phone or computer with each trade being instant and costing pennies with real ownership. You could even have the market open 24/7 365 like crypto has. It doesn't need anyone to ring a bell or open it.