Earlier quoted context omitted.
Yeah, and consider the effect that it has on the rouble: with lots of sales (of mostly energy) but nowhere to spend that money the rouble is actually likely to appreciate rather than depreciate. I'm referring here to the premature celebration of the "death of the rouble", you may remember this narrative. This is still a bit obfuscated by the ongoing sale of the Russian foreign reserves (the ~50% that wasn't frozen).…
Heh. I sometimes wonder how vulnerable the US would be to a squeeze appreciating USD. You could probably even get large parts of the US political class to go along with it, as (in the short term) they'd be benefiting relative to their countrymen.
This whole “Squeeze” thing is a function of liquidity. The reason that stocks like GME and AMC can experience the effects of a short squeeze is because of how relatively illiquid they are (i.e. point $1bn of consumer capital toward a $3bn stock with thin trading and you can do wild things).
The USD is the currency in which nearly all middle eastern oil is priced, the currency in which $16tn of consumer spending is done, quadrillions of stock trades, etc etc etc.
There’s no individual or group who can point enough capital at that to make for a squeeze, and even if they could, then why wouldn’t the treasury take advantage and start printing more dollars (see: Hertz issuing new shares and ruining wallstreetbet’s day)