🌍 **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.