Is a Global Shift On the Horizon?

The USD continues to show weakness as collateral values improve. Reserve bank credit is displaying a noteworthy positive RoC compared to last week, and China is adding liquidity as the USD declines.

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While signs of increasing liquidity are evident, many central banks still have one foot on the brake. As the U.S. government faces significant deficits, we're in a scenario where the driver of monetary inflation is the government itself.

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A key way of monetizing this debt is through issuing more short-term bills—something we're keeping a close eye on.

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Liquidity rose by $1.653 trillion last week, marking a 1.3% increase in total. Our RoC indicates a small strength increase in the upward trend.