The Dollar Milkshake Theory states that the US dollar is weakening, but all other fiat currencies are weakening more. Because the dollar is the bedrock of
A few years back, I attended a financial literary conference in Harlem when someone introduced me to the “Dollar Milkshake Theory.”
This changed everything.
The Dollar Milkshake Theory states that the US dollar is weakening, but all other fiat currencies are weakening more. Because the dollar is the bedrock of the global economy (meaning USD is used to buy anything worldwide), it will kill all other currencies before it implodes.
It’s like a milkshake; when you mix all the other currencies together, the dollar is the only thing left standing.
The iPhone 15 Max Is the Dollar Milkshake Theory
Yup. The iPhone is Dollar Milkshake Theory.
Right now, because of the strength of the US dollar — the USD has been at its strongest point since 2002 — Europe has to pay absorbently high prices for American goods. So, while the iPhone 15 Max might cost around $1099 in America, it costs 30% more in Europe.
The same goes for all of these:
A strong US dollar is not good for companies that rely on exports, like Apple.
The strong USD is a sign of slowing global growth. It means foreign capital is storing all of its wealth in the dollar while its homeland takes a nose dive.
Moreover, all of this is breaking the offshore dollar debt system, heralding the end of the dollar reserve against the backdrop of geopolitical turmoil.
Sell Everything. Should You?
Nah. We’re not telling you to do that. But we are saying that if the Fed cuts rates, ostensibly in September, assets will be locked down—mostly.
This means that holding cash isn’t a bad spot to be in. Dollar-cost averaging isn’t a bad spot to be in.
Here Are 3 Other Strategies to Consider:
1. The Sky Is Falling Strategy
Nothing ever happens.
Stay the course, invest 30% of your income into a 3-fund portfolio, and retire someday. If the world economy collapses, you couldn’t have prevented it anyway.
2. Follow the VIX
As my friend and economist Cody Collins texted me the other day, you can always follow the VIX, an index that tracks the volatility of the S&P 500.
Essentially, it tells you how fearful investors are. Currently, even with it isn’t as high as in recent months. That’s good!
3. Invest in Safer Assets if You’ve Very Conservative
Stablecoins are pegged to the US dollar, so their price doesn’t fluctuate much. The best Stablecoins are USDC, Dai, and Digix Gold Token.
Here are some platforms to make money with them:
Final Thought on Dollar Milkshake Theory
The end times. They aren’t here… yet.
But it’s always good to have a plan B and stay the course if you truly believe in the long-term value of crypto (which we do!!)
EXPLORE: SEC Issues Investor Alert On Crypto Fraud, Unveils Tactics Used By Fraudsters
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