When money stops circulating, the money supply shrinks. The reason they do QE and they do fiscal

spending is to replace the money that's disappearing. So you got a bucket with water in it, right?

And it's got holes in it and there's water leaking out of the bucket. Well, if you pour money

into the top of the bucket, you can keep the bucket from going dry, but unless you pour more

in than is being leaked out,

the bucket never overflows over the top.

QE and these fiscal programs kind of keep the bucket from going dry,

but they don't lead to this runaway hyperinflation that everybody predicts

every time the government says we're going to spend a trillion dollars.

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What's going on, guys? It is Wednesday,

December 30th, and today I'm joined by Brent Johnson. Brent Johnson of Santiago Capital is probably best known today for his dollar milkshake theory. His view that the dollar and U.S. markets suck the liquidity

from everywhere else. I'm sure we're going to get into that in this conversation on our

end-of-year extravaganza. So without any further ado, let's get to it. All right, Brent, welcome

back to the breakdown. It's great to have you here again. Happy to be here. Thanks for having me.

So a fun end of the year episode, and I thought of you when I was thinking about some of these

questions. I think you'll have really interesting insight into it. So I'm kicking off with

a question that I think is sort of the big one, right? Which is what, in your opinion, was the most important economic story of 2020?

Well, I mean, the easy answer would be the COVID lockdowns, right?

...