Why the Dollar is Not Doomed and the Euro Dollar is the Real Global Reserve Currency.

We’ll be looking into the following topics today:

1. The Petrodollar Myth.

2. The Global Car Shortage.

3. Retail Sales Decline is Misleading.

4. The New Cold War of AI.

Let's Dive In!

YouTube Channel: Eurodollar University

Title: If it is, what does that even mean?
Link: https://www.youtube.com/watch?v=UoHdSPzBMU0

Here are the top takeaways:

• There is no such thing as a petrodollar, and that the Chinese were never attempting to replace the dollar with their own currency. The text also goes on to say that the Euro dollar is the real global reserve currency, and that it is not possible to replace the dollar by replacing the Euro dollar.

• What is needed to replace the dollar is a new system that bankers can use that is not based on the dollar.

• The Euro Dollar system is the world's most important currency, but it is not without its problems.

• One of the biggest problems is that there are not enough Euro dollars in circulation. This causes all sorts of problems for the global economy, and it is one of the main reasons why the dollar is not doomed.

• The other reason why the dollar is not doomed is that it still serves as an incredibly useful medium of exchange. There is no other currency that can replicate all of the functions of the dollar, at least not yet.

• So, for the foreseeable future, we are stuck with this system and all of its negative consequences.

Newsletter: Apricitas Economics

Title: A Global Perspective on the Car Shortage.
Link: https://www.apricitas.io/p/a-global-perspective-on-the-car-shortage

Here are the top takeaways:

• The global car shortage is a major problem that is affecting economies and consumers all over the world. The shortage is being caused by a variety of factors, including the pandemic, semiconductor shortages, and production disruptions.

• China is in a unique situation, with production bouncing back quickly after the pandemic but now facing strong demand pressure. In the US, production has recovered but there is still a large backlog of unfulfilled orders and ongoing material shortages.

• The situation is similar in other major trading partners, such as Canada and Mexico. The shortage is having a major impact on prices, with used car prices rising by 50% in the US.

• The global car shortage has been one of the most visible disruptions during the pandemic. While prices have moderated and some subsectors have even seen increases, the overall impact has been significant.

• The situation is a reminder of the increasing complexity and interconnectedness of modern manufacturing and the importance of supply-chain resilience.

Website: Wolf Street

Title: Falling Prices of Goods Push Down Retail Sales (as Inflation Shifted Massively to Services)
Link: https://wolfstreet.com/2023/01/18/falling-prices-of-goods-push-down-retail-sales-as-inflation-shifted-to-services/

Here are the top takeaways:

• The retail sales figures for December show a sharp decline, but this is due largely to falling prices for goods, rather than a decrease in actual spending.

• Consumer spending on services, which are not included in the retail sales figures, is still strong.

• The headline-grabbing drop in retail sales is therefore not as bad as it seems at first glance. The biggest reason for the decline in retail sales is falling prices for durable goods such as vehicles and appliances. This is due to increased competition among retailers and a shift in consumer spending towards services.

• Cannabis prices are also plunging, as legal recreational use becomes more widespread and supply increases. This is having a significant impact on retail sales, as cannabis stores are included in the Miscellaneous store category.

• Overall, consumers are still spending, but the mix of what they are buying has shifted away from goods towards services. This is likely to continue in the future as inflationary pressures remain strong in the service sector.

Newsletter: Noahpinion

Title: Three books about the technology wars.
Link:

Three books about the technology wars

Here are the top takeaways:

• The U.S. has a decisive advantage in the new technological cold war, thanks to export controls that have effectively cut off China's access to cutting-edge semiconductor technology.

• China still has a significant advantage in wireless technology, due to the dominance of Huawei. Free societies need to play to their strengths in order to fight back against Huawei and other Chinese tech companies.

• The debate over which country is leading in artificial intelligence (AI) technology is heating up, with some arguing that the United States is in the lead while others believe that China is in the lead.

• It is difficult to assess who is really in the lead as AI technology & applications are still relatively new. What is clear, is that both the U.S. and China are investing heavily in AI research and development, and that the competition between the two countries is likely to be fierce.

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