4 ms·
Curious if others are familiar with the “dollar milkshake theory” - this seems to be the first sign of it being a miscalculation. Alternatively, this rate of de
by erulabs 3y ago
Curious if others are familiar with the “dollar milkshake theory” - this seems to be the first sign of it being a miscalculation. Alternatively, this rate of dedollarization may have been calculated by the fed ahead of time. I’d love to know how far off prediction this 10x acceleration is.
- awaythrow483 3y agoI'm not supporting or attacking the dollar milkshake theory but I don't think this contradicts it. I think the theory would say that this will counterintuitively result in an eventual huge dollar spike as new dollar demand but also liquidity dry up while existing demand from existing USD loans stay constant. I think it's too early to tell. I don't believe in his USD superspike but I do think the underlying dynamic is real and this will not result in the dollar being substantially lower in the let's say 1-3 year time frame (ie DXY < 90)