The Podcast of the Lotus Eaters PREVIEW: Brokenomics | Dollar Milkshake Theory with Brent Johnson
Jul 29, 2025
Brent Johnson, founder of Santiago Capital and creator of the dollar milkshake theory, dives into the impending fiat collapse and how it might paradoxically strengthen the U.S. dollar. He discusses the dollar’s dominance in global finance, its ties to oil transactions, and the impact of rising interest rates on markets. Brent explores economic strategies surrounding tariffs and their effects on national debt and foreign investment. The conversation unveils the complexities of U.S. Treasuries and how global dynamics influence investment decisions.
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Dollar Milkshake Theory Explained
- The dollar milkshake theory describes how the U.S. dollar will strengthen against other fiat currencies despite its own problems.
- This occurs as global dollar debt forces other countries to depreciate their currencies, worsening their economic pain.
Eurodollar Market's Global Impact
- The eurodollar market consists of U.S. dollar-denominated credit created outside the U.S., mainly due to the U.S.-Saudi oil agreement.
- Defaults in this market cause serious economic pain globally, as countries owe dollars they cannot print themselves.
U.S. Liquidity Printing Advantage
- The U.S. can print liquidity to manage crises while other countries cannot.
- This ability makes the U.S. more resilient despite its problems, especially compared to other nations during 2022 turmoil.