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/biz/ - Business & Finance

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50670282 No.50670282 [Reply] [Original]

Is Dollar Milkshake Theory basically a short squeeze on the Dollar?

>> No.50670324

>trying to re-inject last months story
gtfo bot

>> No.50670353

No u gtfo

>> No.50670374

>>50670282
"dollar milkshake" is the kind of contrived, retarded analogy only an economist could come up with. it doesn't even make sense - when you suck out the liquid milk from a milkshake, eventually you're only left with froth. I fucking hate this "dollar milkshake" faggotry.

>> No.50670375
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50670375

you know it

>> No.50670409

>>50670374
What's in a name
The idea is that rising rates make dollar debt more expensive, thus countries are trying to get dollars to pay their dollar denominated debt, increasing the demand for dollars and the dxy
It is like a short squeeze I think, by taking usd denominated debt you are shorting the dollar

>> No.50670417

>>50670409
I get it, it's not a bad theory, it's just retarded to call it "dollar milkshake" as if that makes it easier to understand.

>> No.50670455

>>50670282
>>50670409
> thus countries are trying to get dollars to pay their dollar denominated debt
problem is that they increasingly can't (like Sri Lanka right now), as they are fucked up by the usd denominated debt going up in value while at the same time struggling to import even basic necessities as the usd moon
therefore it's bearish for the USD as a reserve currency long term, it's the end of the paradigm

>> No.50670659

>>50670455
It probably isn't, US hegemony is very entrenched

>> No.50670720

>>50670659
>US hegemony is very entrenched
sure, still is, but usd numba going up = worldwide instability
efforts are being made from all angles trying to get out of it
seems impossible now, will appear obvious later. it's not linear

>> No.50671102

>>50670282
Nigger countries are just all going to default on USD loan if dollar goes too strong, they never intended to pay off the principal, only interest, now they can't even pay the interest, they are just going to leave it like and play dead. Unless US going to nuke 40 percent of the 3rd world countries who don't pay, all of them are going to declare country-rupcy and not give a shit. Dollar milkshake works in the beginning of the ending debt cycle, but not when we have a systemic collapse.

>> No.50671170

>>50670659
Lol. Lmao. I'm team Uncle Sam

>> No.50671185

>>50670282
You see, the lender never had the intention of getting their money back. Most of these loans were bankrupt from the very beginning, as the lender printed that money out of thin air.

Money is created as soon as the loan is issued. These banks had no money in the beginning anyway, all they did was create fraudulent contracts which indebted 3rd world nations in making them western paypigs.

All you have to do is install/coup some corrupt leader into office in a democratic 3rd world shithole, and then have them borrow fake money on your behalf, and you have permanently enslaved an entire nation.

China has started doing the same thing, which is starting to piss off the West, since they took it from the IMF playbook.

>> No.50671397

>>50671102
this
>>50671185
redpilled

>> No.50671424

>>50671185
Good take

>> No.50671560

>>50670374
I think it's more in terms of "There will be blood" of the whole "i drill on by your land, and i suck the oil up"
https://youtu.be/a5d9BrLN5K4
when other countries start pulling in the dollar hard, they drain the liquidity for others, that then have to also start have to draw in harder on it, which makes it even harder for the rest

>> No.50671598

>>50671185
we're seeing this a lot these days:
>issue loan
>know loan will default
>make it so loan is backed by "local resources"
>loan (as predicted) fails
>they now get claim on all those resources

>> No.50671665

>>50670374
yeah brent is not even an economist, though. he's just selling something. so it's even worse than that.

>> No.50671694

>>50670409
yeah except no one is short. that's the retarded part. brent literally thinks the fed can't just print more money whenever they want.
so far, the fed has openly promised liquidity in every single crisis. and so far, every single QE program has been larger than all previous QE programs combined. so basically he's an idiot and a grifter, repeating something everyone already knows as if it's an insight about how it will be different this time. it will not be different until the currency collapses. volcker is never coming back.

>> No.50671796

>>50671665
Economists are fucking stupid anyway. There's absolutely nothing to be proud of in calling yourself an economist, as they've been really bad at predicting the direction of the economy.

It's one of the fields where it doesn't matter whether you're right or wrong, as long as you sound like you know what you're talking about. In some ways, I believe their main job is to be as wrong as possible, most of the time so as to delude the public.

>> No.50671818

You can easily tell apart glowniggers on /biz/ these days

>> No.50672588
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50672588

"I. Drink. Your. Milkshake. I drink it up!"

That movie is 14 years old now so Zoomies may have been in preschool at the time, which is why they misunderstand the reference.

TWBB and DDL is one of the most overrated movies and performances of all time.

>> No.50672882

>>50670417
I dont get why they just dont call it a liquidity crisis. Its pretty clear a big one is coming soon to show everyone the stupidity of the current financial system.

Theres when “a level playing field” comes in.