Milk Road Macro The Dollar Milkshake Theory & The Investment of The Century w/ Brent Johnson
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Nov 18, 2025 
Brent Johnson, CEO of Santiago Capital and creator of the influential 'dollar milkshake' theory, shares his insights on the current macroeconomic landscape. He explains how rising U.S. rates are drawing capital into dollars, impacting global assets. Johnson discusses the potential of stablecoins to reinforce dollar dominance and the misleading narratives around de-dollarization. He also addresses the implications of liquidity risks and U.S.-China economic tensions, while forecasting strategic capital opportunities for 2026 as the U.S. aims for supply-chain supremacy.
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Dollar Milkshake Explains Dollar Strength
- The Dollar Milkshake Theory predicts US rates rising will pull global capital into the dollar, lifting US assets and volatility.
- Brent says the theory has tracked markets: stronger dollar, higher US equity and gold versus other fiat currencies.
Stablecoins Accelerate Dollar Dominance
- Dollar-denominated stablecoins dominate crypto with ~99% market share, showing global demand for dollars in digital payments.
- Stablecoins enable foreign citizens to hold dollar balances outside local banks, increasing US currency influence and weakening other governments' control.
Regulation Co-opts Stablecoin Power
- The Stablecoin Act (Genius Act) legally blesses stablecoins and reduces the chance of US conflict with issuers.
- Brent argues this co-option amplifies US monetary dominance beyond merely soaking up Treasury issuance.