May 5, 2022, 3:04 pm EDT
Skyrocketing US Dollar
The skyrocketing US dollar could indicate a global disaster. The reason is simple. By asking the question “Which country in the world is least likely to file bankruptcy?”, most people would answer ‘The United States of America”.
The world encounters so many unprecedented problems that nobody thought about it before 2020:
- Global COVID-19 Pendemedic
- Russia-Ukraine Wars
- Unstable European Geopolitical Environment
- Global Inflation
- Shortage of supply (energy, food, computer chips)
- Economic Collapse (Russia, China, Sri Lanka, etc)
Thus, it makes sense that worldly currency flocks into the US dollar. Rising rates by the Federal Reserve as mentioned yesterday by Chairman Jerome Powell also add the incentive to the dollar quickly.
However, the rise of the dollar is the conclusion of troubles that the whole world is facing. Therefore, it means the outlook of the future consists of lots of uncertainties. Lack of faith or confidence push investors to think about safety rather than risks.