Bankless How the Stablecoin Milkshake will Redollarize the World | Brent Johnson
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Jan 5, 2026 
Brent Johnson, Founder of Santiago Capital and creator of the Dollar Milkshake Theory, dives into the complexities of global currency dynamics. He argues that while some may want to de-dollarize, the Eurodollar system continues to enforce dollar demand. Johnson discusses how the GENIUS Act could boost the use of stablecoins and facilitate redollarization. He also explores the implications of sovereign debt crises, the influence of AI on economic conditions, and the emerging currency competition between the US and China.
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How The Dollar Milkshake Works
- The Dollar Milkshake predicts rising US rates push the dollar up and create global volatility.
- That dynamic favored US assets and gold since 2021 even without a full sovereign crisis.
Sovereign Debt Spurs Political Collapse
- A sovereign debt crisis is when rising rates make governments lose control of financing and the currency.
- Currency crises quickly become political crises because loss of monetary control undermines regimes.
Central Banks As Can-Kickers
- Central banks primarily exist to perpetuate the state by kicking credit problems down the road.
- Their role as lender-of-last-resort masks systemic math: debt-based money requires continual expansion.