There is a saying in macroeconomics "History doesn't repeat itself, but it often rhymes." Analysts say the iconic "Plaza Accord" pattern of 1985 is returning to global financial markets right now.

In other words, the context of 1985 was much like now. The valuation of the US dollar was then overvalued, posing a major threat to America's export and manufacturing sectors. In order to deal with the trade deficit, the world's 5 major economies (G5) united at the Plaza Hotel in New York and took an unprecedented decision to artificially reduce or devalue the dollar. It is called "Plaza Accord".

The result was that the dollar index crashed nearly 50% over the next 3 years and the Japanese yen nearly doubled in value. When the world's major central banks launch coordinated interventions in a currency pair (especially USD/JPY), the market is forced to move in that direction. That decision in 1985 saw a huge rise in the valuations of gold, commodities and non-US assets as the dollar weakened. This was one of the biggest currency resets in modern history.

Looking at the current situation, the variables seem to match exactly. The US trade deficit is once again at an all-time high, and the Japanese yen is at a historically weak position. Last week the New York Fed (NY Fed) checked the USD/JPY rate in what financial terms call a "rate check". This is usually the step just prior to direct FX intervention or intervention in the currency market. That is, the Fed and the Bank of Japan may once again be signaling their readiness to sell the dollar and buy the yen.

There has been no official intervention yet, but smart money or institutional investors have started taking positions. If the 'Plaza Accord 2.0' is indeed executed, and the dollar collapses massively, the impact on global asset classes (stocks, gold or digital assets) can easily be imagined. The valuation of everything priced against the dollar is subject to re-adjustment.#USIranStandoff #ETHWhaleMovements $BTC $ETH