THE NIGHTMARE SCENARIO NOBODY IS TALKING ABOUT AN OIL + DOLLAR SHORTAGE The nightmare scenario nobody is talking about right now is what happens if the Dollar skyrockets at the same time as oil. Since the world's oil supply is purchased in Dollars, they are typically inversely correlated. A lower Dollar = increased international demand for oil. The only time we've seen a brief period of oil 🔼 Dollar 🔼 was in 2022, during the economic slowdown. The nightmare scenario we're facing is a global oil supply shortage at the same time as an economic crisis. Both of these compound the demand for Dollars because not only are nations forced to liquidate greater assets to purchase oil, but servicing sovereign debt becomes much more expensive because it's denominated in Dollars. This energy crisis could very well be the beginning of Brent Johnson's @SantiagoAuFund Dollar Milkshake Theory and the United States' plan to take a large portion of its debt out of circulation.
