The recent war in Iran has revealed an uncomfortable truth: the world is short US dollars. That’s because as energy prices and interest rates rose, so too did the demand for USD, and it’s not surprising.
Everyone forgets that the US dollar is still the world’s reserve currency. This means that most of the world’s trade is denominated in USD, and most of the world’s debt are also denominated in USD.
That means that when energy prices and interest rates rise, so too does the demand for US dollars. The only way to get these dollars is to sell other assets, creating a Dollar Milkshake which will discuss today!
Credit to : Coin Bureau Finance
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