How Americans became richer overnight thanks to the Brexit
Britain’s decision to leave the European Union has caused a major panic in global markets. While this is bad news for equities and European currency, this event has made people in the United States richer. The biggest story is that this is good news for the United States treasury and the U.S. Dollar. Just by holding USD, Americans became richer! How so you may ask? Well, foreign currency such as the Pound and Euro had a sharp decline compared to the Dollar. The U.S. Dollar Index is up and this proves that the USD became stronger. As a result, this increases the purchasing power of American consumers. Also, what no one is talking about is how this helps the U.S. pay back its debt immensely. Because the dollar is more expensive and the Fed is long on treasuries.
Congrats, you just got richer doing nothing!