Why the U.S. Dollar Is the “Cleanest Dirty Shirt”

Published on
March 18th, 2022
Duration
54 minutes

How a Hot Labor Market and a Shooting War Complicate the Fed’s Decision-Making Process


Why the U.S. Dollar Is the “Cleanest Dirty Shirt”

Live ·
Featuring Michael Kao and Maggie Lake

Published on: March 18th, 2022 • Duration: 54 minutes

Michael Kao is not of the camp that sees the “imminent doom of U.S. dollar hegemony.” He notes that although the de-dollarization narrative is seductive, the U.S. dollar remains the “cleanest dirty shirt” in the global system. Kao, the CEO of Akanthos Capital Management, joins Maggie Lake on Real Vision Live to discuss inflation, oil, and the dollar’s status as the world’s reserve currency. Kao sees a developing structural supply deficit in oil, exacerbated by sanctions on Russian exports, actually making the U.S. dollar relatively stronger, even turning it into a “wrecking ball” vis a vis potential challengers such as the Chinese yuan. Kao and Lake also address the Federal Reserve’s monetary tightening cycle and how it will evolve amid both rising inflationary pressures and emerging threats to growth.

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