The de-dollarization trend continues these days. The macro guru Lyn Alden is addressing the issue, presenting the factors that are accelerating this.
The de-dollarization trend continues
Lyn Alden, who you probably know by now is an expert in macroeconomics, has identified two major factors that are accelerating the trend of de-dollarization.
During a recent appearance on The Jay Martin Show, Alden stated that the acceleration of de-dollarization is due to the loss of trust in US government bonds by other countries.
She said that she had recently learned from an expert in economics that the returns on US treasuries are currently lower than the rate of inflation. As a result, many countries have been seeking alternative investment opportunities.
“This past year you’ve seen a little more acceleration in de-dollarization, and there are, I think, two big underlying foundations for that.”
She continued and said this:
“So number one is that ever since the global financial crisis and a few years after that, a number of countries decided that (US) treasuries are probably not going to be attractive. And they don’t want to finance the US government at negative real yields.”
She also stated the following:
“For much of the 2010 decade, for example, T-bills were yielding less than inflation. Longer-duration treasuries were yielding roughly in line with CPI (consumer price index)… And they were underperforming other assets like equities and real estate and things like that.
So a lot of these governments said, ‘We don’t really want to facilitate that.’”
BTC and financial markets to see an explosion
According to Arthur Hayes, the founder of BitMEX, the macroeconomic conditions seem to be turning in favor of Bitcoin (BTC).
During a recent interview on the “What Bitcoin Did” podcast, a seasoned crypto expert shared their belief that the government’s response to a debt deadline crisis typically involves waiting until the eleventh hour before raising the limit.
