As the dollar strengthens due to crowding-out effects from high US deficits, foreigners will sell what they can (not what they want) to defend their currencies, particularly treasury bonds, which sends yields up and further slows both the US and global economy in a self-reinforcing cycle.

causalpending

Speaker

Luke Groman

Evidence Quote

that crowding out impact all seek will drive the dollar up as the dollar goes up foreigners will sell what they can not what they want to to defend their currency that's treasury bonds that's going to send yields up

Source

Luke Gromen: Expect Market Turbulence Ahead Due To Tightening LiquidityAdam Taggart | Thoughtful Money®
Created: 8/12/2026, 10:19:56 PM

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