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EssentialThe Essential Conversation

Here's How the Hong Kong Dollar Breaks Its U.S. Dollar Peg

Featuring Francis Hunt and Brent Johnson

Aug 15, 2022 • 43 minutes

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Essential

The Essential Conversation

Here's How the Hong Kong Dollar Breaks Its U.S. Dollar Peg

WARNING: A peg failure poses major economic pain for Hong Kong, mainland China and perhaps beyond.

Featuring Francis Hunt and Brent Johnson

Aug 15, 2022 • 43 minutes

Making the call for the failure of the Hong Kong dollar’s (HKD) peg to the U.S. dollar (USD) has itself been a failure – so far. Maybe it was just made too early. Francis Hunt has been observing various signals of stress, as the Hong Kong Monetary Authority has repeatedly stepped in to defend the peg since the Federal Reserve started raising interest rates earlier this year. This time, according to Hunt, it is different. In conversation with Santiago Capital CEO Brent Johnson, he offers an emergency update on the probability the Hong Kong dollar breaks its U.S. dollar peg, an event Hunt considers underpriced by markets. Assessing it from fundamental as well as technical perspectives, “The Market Sniper” underscores the timeliness of the trade setup. Continuing capital flight, declining tax revenue, ever-tightening liquidity, and China’s brewing internal issues all undermine a relationship that dates to 1983. Recorded on August 9, 2022. Show More

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

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The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

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