When global liquidity stress occurs (as in 2008 and 2020), the dollar initially falls as assets are sold and repatriated home, but if stress intensifies into crisis, the dollar rebounds sharply as global liquidity demand overwhelms local needs; current dollar weakness follows this pattern and may reverse if markets deteriorate further.
causalpending
Speaker
Brent JohnsonEvidence Quote
“The reason the dollar is falling is because the US has sucked up all of the world's capital... they sell US dollar stocks or bonds... to send them home they exchange them to euros or pounds and so as a result US asset prices fall and the US dollar falls. Same thing happened in 2008 and in 2020. But then if it continues to get worse... that's when the dollar rebounded very quickly.”
Created: 8/11/2026, 6:17:41 AM
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