October 6, 2022, 3:43 pm EDT
The Weaker US and Stronger Dollar
The US used to be a global leader in building up finances, politics, and ideology so that other countries could find a stable platform to avoid confronatation. It is essential for the world to stay in a peaceful and stable environment to keep up the lives.
However, the US is no longer accountable for such a role after 2020. Not only COVID-19 reveals to the world how a disaster can affect the world, but out-of-control inflation, wars, and now a potential nuclear threat are all coming to the surface also.
Russia Putin, China Xi, North Korean Kim, Iran Ali, and Saudi Arabia Mohammed have recently grabbed much attention in headlight news. US, UK, Germany, Frances, and Canada are busy with various agendas without producing meaningful fruits or positive impact.
For example, the US Department of Justice and the FBI are working hard on Trump’s investigation. The Biden-Harris tied up their effort on the student-loan relief program. Perhaps, it would help the coming election for the democratic party. US Fed chairman Powell and his team keep promising to fight inflation for months but there is no improvement in sight for 2022. Janet Yellon, the sectary of the treasury and previous chairperson of the Fed, is about to leave the position soon. Does she know the US economy is entering into big trouble?
The weakness of the US government is visible to over the world. In our opinion, this is why other opponents (Russia, China, Iran, North Korea, and Saudi Arabia) rise up quickly. European countries including NATO do not find much information from big brother, the US like it uses to be. Thus, Russia-Ukraine is escalating higher risks and spreading out the much worse possible outcomes. Even though Putin is struggling on the battlefield, the worry about the future becomes intense not release since February 24, 2022.
The only thing rising now is the US dollar which summarizes all the chaotic events mentioned. When the dollar becomes the king, it forecasts the coming crisis. Therefore, we hold a pessimistic view for the last three months of 2022. Do not let a few days of rebound confuse your decision. The big picture is not pretty.