Dollar Milkshake Wrecking Ball | Brent Johnson & Michael Kao

Hidden Forces

Demetri Kofinas

Government, Business

4.8 • 1.6K Ratings

🗓️ 4 October 2022

⏱️ 109 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In Episode 275 of Hidden Forces, Demetri Kofinas publishes the audio from a recent Twitter Spaces event featuring Brent Johnson and Michael Kao, who were both later joined on stage by Michael Nicoletos and Michael Howell for a dynamic conversation about the explosive appreciation in the relative value of the US Dollar, the sources of Dollar strength, and what could bring an end to its role as the main global reserve currency.

Brent Johnson is CEO of Santiago Capital and the author of the “Dollar Milkshake Theory.” Michael Kao is CIO and Portfolio Manager of Kao Family Offices and is well-known for coining “the Dollar Wrecking Ball” as a similar metaphor for describing the dynamics of Dollar hegemony. Michael Nicoletos is a macro investor and the founder and fmr. CIO at AppleTree Capital and Michael Howell is the CEO of CrossBorder Capital and a regular contributor and active member of our Hidden Forces Genius community which you can learn more about at HiddenForces.io/subscribe.

Over the last six months, the US Dollar has appreciated tremendously against a basket of international currencies, from the pound sterling and the euro to the Japanese yen and Chinese yuan. Because of the Dollar’s outsized role as a global funding currency, Dollar strength often translates into foreign weakness, not just for other currencies, but for their respective economies and asset markets as well.

The goal of this conversation is to help deepen your understanding of the dynamics driving Dollar strength, the consequences for the global economy and asset markets the longer it continues, and what the possible end-game could be for economies and governments.

You can access the transcripts and intelligence reports of previous episodes by going directly to the episode page at HiddenForces.io and clicking on "premium extras." All subscribers gain access to our premium feed, which can be easily added to your favorite podcast application.

If you have questions about our genius tier, which includes access to the Hidden Forces community, Q&A calls with guests, in-person events, and dinners, you can learn more at HiddenForces.io/subscribe. If you have further questions, feel free to send an email to [email protected], and Demetri or someone else from our team will get right back to you.

If you enjoyed listening to today’s episode of Hidden Forces you can help support the show by doing the following:

Write us a review on Apple Podcasts & Spotify

Subscribe to our mailing list at https://hiddenforces.io/newsletter/

Producer & Host: Demetri Kofinas

Editor & Engineer: Stylianos Nicolaou

Subscribe & Support the Podcast at https://hiddenforces.io

Join the conversation on Facebook, Instagram, and Twitter at @hiddenforcespod

Follow Demetri on Twitter at @Kofinas

Episode Recorded on 10/03/2022

Transcript

Click on a timestamp to play from that location

0:00.0	What's up everybody? My name is Demetra Grafinas and you're listening to Hidden Forces,
0:06.0	a podcast that inspires investors, entrepreneurs and everyday citizens to challenge consensus narratives,
0:14.0	and to learn how to think critically about the systems of power shaping our world.
0:19.0	In this episode of Hidden Forces, I republished the audio from a Twitter Spaces event that I hosted earlier this week,
0:25.0	headlined by Brent Johnson and Michael Cow, who were later joined by Michael Nicoletos and Michael Howe.
0:32.0	Brent is CEO of Santiago Capital and the author of the Dollar Milk Shake Theory,
0:37.0	which we delved into during his previous appearance on the podcast for episode 250.
0:42.0	Michael Cowe is CIO and portfolio manager of Cow Family Offices,
0:48.0	and is well known for coining the quote, dollar wrecking ball,
0:52.0	as a similar metaphor for describing the dynamics of dollar hegemony.
0:56.0	Michael Nicoletos is a macro investor and the founder and former CIO at Apple Tree Capital,
1:03.0	and Michael Howe is the CEO of Cross Border Capital and a regular contributor and active member
1:09.0	of our Hidden Forces Genius community.
1:12.0	The purpose of this conversation and why convene the panel is to help advance our understanding
1:17.0	of the dynamics of dollar strength, something that has befuddled many analysts
1:22.0	and which runs counter to common perceptions of how currency and sovereign debt crises unfold.
1:28.0	It turned into a very lively discussion about a topic that has become increasingly relevant in recent months,
1:35.0	as the US dollar has appreciated dramatic against the basket of international currencies
1:40.0	from the pound sterling and the euro to the Japanese yen and the Chinese yuan.
1:45.0	Because of the dollar's outsized role as a global funding currency,
1:49.0	dollar strength often translates into foreign weakness, not just for other currencies,
1:54.0	but also for their respective economies and asset markets.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Demetri Kofinas, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Demetri Kofinas and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.