Carry trade with USD.

Today, I checked (but not read fully) an article how traders get loans in USD, convert it to EUR, AUD or different currency, and invest it on the market, betting that the USD will be down at the time they need to close the loan.

It makes sence, since let say you got 5M USD from FED at their discount rate ~5%. Later, the discount rate is cut more, so you owe less. Also the USD get debase, and if let say it debase 5%, you owe no interest in the other currency.

Those money, can be invested in non US markets, simply because the US market is denominated in USD. So we may expect markets crash all over the world if USD raly from here.

:-)