🌍 **The Global Impact of U.S. Interest Rates** 🌍

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✨ **Historical Data:**

- **1980:** 20% rate hike → 💥 1982 Latin American debt crisis.

- **1989:** 9.75% hike → 💨 Japan's real estate bubble burst, leading to "Lost Decades."

- **1995:** 6% hike → 🌪️ 1997 Asian financial crisis.

**2020-2023:** Fed raised rates 10 times to 5.5%.

**Mechanism:**

- **Rate Cuts:** Capital flows globally, inflating asset bubbles.

- **Rate Hikes:** Capital returns to the U.S., bursting bubbles and causing economic downturns.

**Outcome:** The cycle allows the U.S. to acquire global assets cheaply.

**Future:** As global awareness grows, the dollar's dominance might wane.