I got introduced to a new narrative the other day. I'm not sure I understood it exactly, but it goes something like this.

As nation state fiat currencies start to collapse and their governments can't pay the US back what they're owed, the dollar price will actually rise.

The logic is that the principle being written off from the US balance sheet and hence taken out of circulation at default is much greater than the interest the failed country paid before it went to shit. The need for liquidity went down in relation to the interest, but the supply got strangled many times more.

I'm not really sure what sets off the collapse, but a recession from a virus might do the trick, I guess.

Read the original at Citadel21.

- Mutley