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Can you explain to me what you mean by that? I understand the dollar milkshake theory, which involves central bank action increasing liquidity while raising rates. The ultimate endgame is the collapse of the dollar. I never understand how the bitcoin analogy applies.
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I think he means that the yen is devaluating against the dollar.
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Okay. Maybe this is the wrong lace to ask, but I read about the dollar milkshake theory a lot. Putting aside bitcoin for a moment, can someone explain to me in detail the analogy.
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I think that the idea is that before the collapse of the dollar, the weaker fiat currencies have to collapse first, and people holding those weaker fiat currencies flee to the dollar as a "safe" haven. So it might appear that the dollar is strong during this process. This might explain also why fiat brains like USDT so much.
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Yes. You described it perfectly. I understand that. What I dont understand is the milkshake image. Why is that like a milkshake? The liquid is liquidity, the straw is raising rates, but where do we go from there?
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This is what chatGPT told me:
"The metaphorical imagery of the U.S. slurping up liquidity from other economies like a milkshake through a straw is the explanation commonly associated with the origin of the term."
Also here's an article from bitcoin magazine on the dollar milkshake theory, and the bitcoin extension: https://bitcoinmagazine.com/markets/weaponized-us-dollar-for-global-hegemony
Thank you for asking. I keep hearing about this, too, and it never quite rose to the level where I bothered to find out. Thanks for being on that wall :)
Here's a cleaner explanation than the bitcoinmagazine one linked below, with an interview from Brent Johnson, the guy who invented the term.
That, I don't know. Never thought about the why of the "milkshake" metaphor.
Sure it's not meaning this... 😛
"I Drink Your Milkshake is a phrase spoken by Daniel Plainview to Eli Sunday at the end of There Will Be Blood, directed by Paul Thomas Anderson. In the film, the phrase was intentionally used as a metaphor: sucking milkshake from someone else to demonstrate not only oil drainage from prized land but the harsh nature of how cruelty often trumps meekness"
In the movie he speak about drilling underneath someone else's land to steal the oil literally out from under them even though it's not his land. The movie is 2h 38m long and the scene is right at the very end. It's hilarious lol
I don't think so, I think what you're seeing is a combination of other currencies devaluing against the dollar and then a slight bump into Bitcoin because it can be used by some for capital flight, but the majority is just relative fiat devaluation
I think it's the game now, the shittier your local currency the quicker it devalues against the dollar and Bitcoin, so those in that country choose, run to the dollar or Bitcoin, that's why stablecoins are growing the way they do, there's just such an insatiable demand for dollars overseas.
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