Golden Question? Is the Petrodollar the Next Thing to Break?

• Golden Question? Is the Petrodollar the Next Thing to Break?
  by Matthew Piepenburg, https://goldswitzerland.com/
  As we warned throughout 2022, the Fed’s overly rapid and overly steep rate hikes would only “work” until things began breaking, and, well…things have clearly begun to break, including the petrodollar.
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  Even prior to the recent headlines regarding US regional banks, “credit event” stressors were already tipping like dominoes around the world, from the 2019 repo crisis and the 2020 bond spiral to the 2022 gilt implosion.
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  Then came SVB et al in 2023, and, of course, the forewarned disaster at Credit Suisse…
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  But as we also warned literally from day 1 of the sanctions against Putin, the oh-so-critical petrodollar would be among the next dominoes to tip, and tipping is precisely what we see. As argued below, petrodollar shifts are yet another headwind for USTs and USDs, but an obvious tailwind for gold. But before we dig into this historical tipping point, it’s important to see the forensic cause of all that is breaking…
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  The Bond Market, Of Course…
  We can’t repeat this point enough: The bond market is the thing.
  And toward this end, the signs of generational and global shifts in global trade, currency settlements and political instability is directly tied to broken sovereign credits reeling under the pressure of artificial rate hikes.
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  read more.

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