In the oil market, the strong dollar is the world’s problem

Bloomberg/Javier Bias/6-7-2022

graphic image of oil barrel“The greenback is hovering at a 20-year high against its fellow major currencies, creating a huge problem for everyone outside America buying dollar-denominated goods. And no commodity is more important than crude oil.”

USAGOLD note: Javier exposes an unprecedented circumstance with which the global economy has very little experience – a rising dollar and rising commodity prices simultaneously. We are reminded of Zoltan Pozsar’s (Credit Suisse) observation that we are witnessing the birth of a Bretton Woods III that will ultimately realign the current world monetary order – pushed, as he said, by “a crisis of commodities.”

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