US dollar strength over recent period has been supported by US equity market performance (particularly 'Seven Stocks' tech concentration), which recycled dollars back into US assets; if US equities decline or stop appreciating, this recycling mechanism breaks and dollars could outflow, creating deflationary shock.
causalpending
Speaker
Louis Vanden EyndeEvidence Quote
“the US Equity markets were the only game in town...so that money kept being recycled uh constantly into US assets”
Source
From Wedlock to Deadlock: The East-West Divorce - with Brent Johnson and Louis Gave— In Gold We Trust [EN]Created: 8/12/2026, 6:04:21 PM
My Notes
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