BREAKDOWN: What If the Too-Strong Dollar Is a Solved Problem? Feat. Jon Turek
CoinDesk Podcast Network
CoinDesk
4.8 • 689 Ratings
🗓️ 17 July 2020
⏱️ 65 minutes
🧾️ Download transcript
Summary
Finance writer Jon Turek argues that between Federal Reserve swap lines, Europe stabilization and a few other factors, the strong dollar problem may be (temporarily) solved.
This episode is sponsored by Bitstamp and Crypto.com.
Today on the Brief:
- The latest information in the Twitter hack
- Thailand starts using its central bank digital currency
- Treasury Secretary Mnuchin calls on Congress for more funds
Our main conversation is with Jon Turek, author of “Cheap Convexity.”
In this conversation, he and NLW discuss:
- Why the dollar has gotten stronger thanks to a savings glut from Asia
- How a too-strong dollar hurts other markets more than the U.S.
- Why globalization died in 2011 and we just didn’t realize it
- How the Fed fixed the global dollar plumbing
- Why there are still questions of actual dollar shortages
- The detente in U.S.-China financial relations
Find our guest online:
Website: Cheap Convexity
Twitter: @jturek18
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Transcript
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| 0:00.0 | The problem really, and I think this kind of gets overshadowed in the famous dollar bowl, |
| 0:06.9 | dollar bear camp, is there fundamentally a shortage of dollars in the world? To me, you can easily |
| 0:14.4 | make the argument that there's a shortage because we have all this dollar denominated debt over |
| 0:19.1 | 13 trillion a bit. And you can easily make that there's a lot of dollars floating around because all of these countries have been buying dollars for so long. |
| 0:26.6 | I think what matters more is not these, whether there's a shortage or not. |
| 0:30.6 | What kind of matters more is that we know the dollar is of fundamental use in the global economy. |
| 0:35.6 | The bigger point is there's something stuck and people can't get dollars who need them. |
| 0:42.1 | Welcome back to the breakdown, an everyday analysis breaking down the most important stories |
| 0:47.1 | in Bitcoin, Crypto, and Beyond. |
| 0:50.8 | This episode is sponsored by BitStamp and Crypto.com. |
| 0:55.4 | The Breakdown is produced and distributed by CoinDesk. |
| 0:59.7 | And now, here's your host, NLW. |
| 1:05.5 | Welcome back to The Breakdown. |
| 1:07.9 | Happy Friday, everyone. |
| 1:09.7 | It is Friday, July 17th. And today, our main conversation |
| 1:13.8 | is a super interesting exploration of the state of the dollar. This is obviously a recurring |
| 1:19.8 | theme on The Breakdown, and today's guest, John Turrick, has a really interesting perspective |
| 1:25.2 | that has evolved a lot this year. |
| 1:33.1 | Earlier in the year before the COVID-19 crisis, he wrote a piece about a new imperial circle, |
| 1:38.2 | where effectively the dollar was the beneficiary of all of this excess savings from every other part of the world finding its way to U.S. markets, which created a really problematic |
| 1:43.1 | impact, not just in the finances of other countries, |
| 1:46.0 | but in the real economies as well, as the dollar strength created a real problem for them, |
... |
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