Hi Readers
With the of Financial year fast approaching tax selling has started early this year.
We tend to see it the last working week but it started last week and is continuing until the end of the month.
Tax selling for those who don't know is when you have value loss on your portfolio and you offset it by gains you have made during the year so you end up paying minimal tax.
We have seen selling in DXB also and that not tax selling.
DXB has a number of small investment managers, who need to realize profits to get paid.
When you have a book with some realized losses on it and you have bigger unrealized gains you need to crystalize the gains to hide the losses and to show a profit.
As you only get paid on profits not losses. You don't work all year without being paid.
Over the weekend we had some major announcements coming through which its not in the media's interest so its being kept quiet as not to stir up the financial markets but it will.
The Saudi's are no longer going to peg oil to the US dollar and what that means is that the US dollar will have no backing as of the 1st July.
The last 50 year agreements has officially ended with the Saudi's refusing to have oil pegged to the dollar.
What that means is higher rates in the US and US partners is here to stay as the US needs to attract money to cover there bond market, and there spending.
In other news we see a Japanese bank having to sell its US bond holdings as the losses are proving to be significant. So who is going to buy the bonds when the Chinese, Russian's and Saudi's are no longer buyers and have been selling and running bonds off there balance sheets. Its a massive problem as the dominance of the US dollar has eroded due to miss management.
The BRICS nations currency will be backed by commodities so they say and while you can see the energy and grain side playing out I question the precious metals side of the equation.
We live in interesting times and we see inflation paralyzing the consumer, how companies will be able to sustain compounding profits remains to be see. The B2B has ended with the suppliers loosing pricing power due to competition. So what will fuel further growth with a bankrupt consumer and cut back in business spending. This isn't just in the US its in all the western world.
I'm fascinated to see, consumers have become slaves to debt, governments are taxing everything to raise money, businesses are tightening there spending, and consumers want more from governments. We really are living in historic times readers.
We just went through the covid crap over the previous 3+ years and I'm just laughing at how stupid people were. The social distancing the mask wearing inside your own car even out side, people where scared to breath air wearing masks outside. Unbelievable, now a report comes out with 90% of Americans regret taking the covid vaccines.
You look back and say what the hell was I thinking, I hope people learn from it as there will be another bullshit pandemic, its the only way to push socialism.
Some of the younger readers have no idea of it but believe me you never want to live in socialism, I'm a capitalist and love the idea of the free market deciding what (product, service or idea )is worth. If you want to experience socialism go and live in China for 6 months, if you don't obey you won't be accepted.
As I said historic times.