One of the "rules" of globalized finance is when oil is strong, the USD is weak (and vice versa). The reasoning? The USD is the safe store of value so folks crowd in in bad times, while oil is the global economic lubricant so folks want it when demand is strong.
No more.
One of the many (oh so many) impacts of deglobalization is the unmooring of such "rules." Markets once linked no longer are. We can now have strong oil AND a strong dollar at the same time.
Which is a disaster for most of the world because while the oil-USD inverse link is gone, all oil remains denominated in USD.
This is exactly why Germany and the EU were so concerned more than a decade ago when they realized that the US was rich in oil and they weren't. Everything follows from there.
Now,
- deglobalization
- energy transition is dead
- Germany's worst nightmare.
It would have happened eventually, but the tipping point? Putin's War.
Others have also noticed (finally): link here.
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For The Grandchildren
When they asked me what I did in the US Air Force, #1 of 20:
Link here. The following was from my twitter account (this is not a family relative):
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For The Grandchildren
When they asked me what I did in the US Air Force, #2 of 20.
This popped up on Facebook overnight. I had never seen this before. I did not know where the "22" tail had retired. This plane is on display at the Weisbrod Museum, Pueblo, Colorado:
This was the "commander's fighter" -- for the commander of the 22 Tactical Fighter Squadron, Bitburg Air Base, Germany, in the 1980s. This is a single-seater so I never flew in it, but each squadron had one two-seater F-15 for every seven F-15s assigned to the squadron. Generally about twenty-one fighter jets in each squadron, so about three two-seaters in each squadron, and abut six two-seaters at every F-15 wing.
At Bitburg Air Base, there were three fighter squadrons
Adopted a 25-weeker that was 1 lb 12 oz 15 years ago. He’s taller than me now.
ReplyDeleteAbsolutely amazing what prayer, NICUs, NICU nurses, and neonatalogists can do these days.
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