>>18031370Dollar milkshake theory is an acceleratory mechanism by which the dollar is actively hyperinflating.
As interest rates rise, all other nations are forced to debaser their currency in order to acquire more dollars to service their dollar denominated debt. This debasement drives investment capital to US equity and bond markets, because the dollar is getting stronger relative to other foreign currencies. It is this flood of dollars back 'home' that will kill the system in the end. All those trillions of foreign held US currency flooding back home until the only thing left in America is dollars, and nothing else. This is the dollar milkshake, it is one of the mechanisms of dollar death. You are wrong in your assertion that the dollar cant die because it holds 'reserve' status. Reserve status is simply a euphemism for trust, and America is losing that trust faster than ever before.
The hollowed out corpse of the Bretton Woods structure is fundamentally paradoxical. The FED must satiate the worlds need for dollars or they risk collapse of all their trading partners. At the same time those dollars are doing a 180 and coming right back home. To make matters worse, the FED has welded together the treasury market and the real estate debt market. This is massively compromising to the entire Federal Reserve monetary system. The dollar itself is nakedely exposed to infinite contagion through the real estate debt. These are the exact same debt instruments that are pulling the regional banks to collapse.
The dollar will not survive this.
