Geopolitics and dollar collapse

Soaring energy costs will drive bond yields up and the dollar down. Military failures in West Asia and Ukraine will combine with soaring energy costs to accelerate the dollar’s decline.

Introduction

So far, only experienced commodity analysts such as Jeff Currie, formally with Goldman Sachs and now co-Chairman of Abaxx Markets in Singapore appear to realise the full horrors of America’s failed attempt to emasculate Iran and the consequences for energy and other prices. If Currie is right and evidence is on his side, at Jackson Hole last Friday Warsh severely understated his interest rate policy challenge.

Readers of this Substack will know that we have been beating the drum on this issue for a long time. Rising commodity prices were already reflecting a continuing decline