The US and the UK now have lagging world currencies with real interest rates below inflation – and have money that has lost more value against gold than any other BRICS nation.
Mirror, mirror, on the wall, who [has] the fairest [currency] of them all?
c1937 Disney Pictures, from Grimm Faierie tales, Snow White and the Seven Dwarfs
Perhaps the Seven Dwarfs are the G-7 nations of the west? In the above YouTube video by Marios–comes the stunning revelation that Mexico and Brazil did the right thing by raising interest rates in mid-2021 when inflation started moving up–and that now both Mexican nationals and Brazilians–have savings rates well above today’s inflation rates because they don’t face the steep wall of rising interest rates.
Rates like those in the US, coming due on commercial real estate resets and the 1031 dance real estate holders can use to reduce their taxes on depreciation by simply buying another building to offset capital gains. Unlike the liquid LA market, Florida has fewer big time players to smooth out real estate market cap rates, and those residents are really being shocked by inflation’s effects on real estate. Recent bank failures are also a result of the mismatch of Mark-to-Market bond yields of 2021 versus the percent of short term debt bonds now at much higher rates.
Stand by for the reverse repo debt swap facility to blow up above the current overnight volume of 2.5 tn. Yes, you heard correctly, Two-point-Five-Trillion USD.
The Dao of Doug: A Bus Driver's Perspective 