THE DOLLAR MILKSHAKE THEORY
Brent Johnson, CEO of Santiago Capital, unfolds the dollar
In 2018, renowned investor Brent Johnson came on Real Vision’s The Interview to explain his ultra-bullish view on the U.S. dollar and dollar-denominated assets. Since then, Johnson has returned to Real Vision twice to revisit his infamous “Dollar Milkshake” theory, and how it is still relevant today.
REVISITING THE DOLLAR MILKSHAKE THEORY
Brent Johnson argues that, prior to 2018, global central banks injected liquidity into the “milkshake” of the global market, and now the combination of higher relative interest rates, the deepest capital markets, tax policy, regulatory policy, the US dollar payment system, and the US military has effectively “swapped out a syringe for a straw.”
Johnson argues that the deck of the global monetary system is stacked in the favor of the U.S. dollar, and that it doesn’t matter which central bank starts quantitative easing (QE) – but rather which central bank captures that QE. Watch the interview to explore his thinking in full depth. It’s a masterclass in macro and is perfect for investors of all levels.