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Brent Johnson Milkshakes Pod | Investing • Finance

The Secret Reason the US Dollar will NOT Die of Weakness

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Breakdown

0:00lesson

Introduction to the dollar system analysis

  • Brent Johnson introduces Santiago Capital's latest paper
  • Paper titled 'band, strength, death, and reserve regimes'
  • Paper is 80 pages long and covers dollar system functionality
  • Consensus often misunderstands dollar's resilience
2:06lesson

Carry trades and dollar system structure

  • Dollar supply is by construction dollar debt
  • Countries outside the U.S. run two carry trades
  • Global carry trade sources dollar funding
  • Local carry trade loans local currency into existence
4:18lesson

Dollar's resilience and systemic implications

  • Dollar is not dying, system built to prevent weakness
  • Dollar death would be from strength, not weakness
  • Consensus end game is delayed due to structural reasons
  • Premium subscribers get full access to the report

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