The Dollar Milkshake Theory, Explained

The Dollar Milkshake Theory, Explained

The Dollar Milkshake Theory, a growing topic of debate on YouTube, Reddit, and other social platforms, claims to offer a framework for explaining the US dollar’s strength in an era of expanding liquidity. It posits that global liquidity injections — largely a product of excessive monetary easing by central banks — are ultimately siphoned into US assets, strengthening the dollar and exerting deflationary pressure on weaker currencies.  While ther…