Recent efforts by foreign leaders have led some to claim that the U.S. Dollar system will soon cease to be the global reserve currency. Brent Johnson of Santiago Capital returns to Forward Guidance to argue that these arguments are utterly wrong, and he explains why in great detail. He expects a major squeeze to occur sometime over the next two years, although he and Jack discuss the potential for China’s re-emergence from recession as a catalyst for more potential short-term dollar weakness. Filmed on April 20, 2023.
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Timestamps:
(00:00) Intro
(02:32) "You Shouldn't Go All-In Against The United States & The U.S. Dollar"
(12:06) Van Eck
(12:55) Why Trade Is Invoiced In Dollars
(19:01) The Bretton Woods System And The Rise Of "EuroDollars" (Offshore Dollars)
(24:18) "Don't Confuse A Possibility With A Probability"
(30:52) Sanctions
(33:56) The Gold Standard And The Necessary Features Of A Global Reserve Currency
(38:44) Bitcoin Standard Would Be "Massively Deflationary"
(40:52) Why Are Central Banks Buying Gold?
(42:05) When And Why Does The Dollar Spike Higher Against Other Currencies?
(47:58) The Debt Ceiling
(58:13 China's Belt and Road Initiative
(01:00:58) Fears Of A Sovereign Debt Crisis
(01:05:06) Currency Hegemons Will Continue To Be The Norm
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
