Part 4/9:
As the dollar climbs, it tends to shine a light on the weakest parts of the global economy. Johnson suggests that countries with less stable currency systems face the highest risks. For example, the soaring dollar affects currencies in nations adjacent to China, exacerbating already delicate situations.
The concept of proximity reveals how interconnected the global markets are, with systemic weaknesses in one area potentially resulting in ripple effects elsewhere. While the dollar's rise stirs concerns, it is essential to assess how much pressure it can exert before the situation breaks.