every twitch and grunt

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​"Chinese Yuan makes up a lower portion of global reserves than the British Pound and even the Swiss Franc, and is just ahead of Canada." Hat Tip to ​@anilvohra69 for the note and graphic in my Twitter feed.

US dollar credit to non-bank borrowers outside the United States grew by 4% year on year  to reach $11.9 trillion at end-June 2019. This represents a slight acceleration relative to the 3% annual growth rate observed at end-2018. Bank of International Settlements  October 2019

​Foreign borrowers of USD denominated debt is accelerating. What gets borrowed in USD has to be repaid in USD and as the USD rises in value, so does the demand for USD.

I update my USD vs CAD Canadian Housing Price chart as well as my Canadian Household Debt  chart every month. Our chronic negative Canadian Balance of Trade means that OUR debt obligations continue to provide more stimulus to offshore than onshore producers.​ A rising USD is not good for most Canadians.

INVESTOPEDIA KEY TAKEAWAYS, July 2019
​
> A dollar shortage occurs when a country spends more U.S. dollars on imports than it receives on exports.

> Since the USD is used to price many goods globally, and is used in many international trade transactions, a dollar shortage can limit a country's ability to grow or trade effectively.

> Most countries try to maintain a reserve of currencies, like U.S. dollars or other major currencies, which can be used to buy imported goods, manage the country's exchange rate, pay international debts, or make international transactions or investments.​

​Pierre Trudeau’s Washington Press Club speech
“Living next to you is in some ways like sleeping with an elephant. No matter how friendly and even-tempered is the beast, if I can call it that, one is affected by every twitch and grunt.” Pierre Elliot Trudeau, the March 1969 speech to the Washington Press Club.