The Dollar Is Our Currency and Your Problem

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 28 September 2022

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, Chainalysis and FTX US. The joke du jour on FinTwit has been that the British pound is trading like an emerging market currency (or on Crypto Twitter, like a s**tcoin). On today’s episode NLW looks at what’s happening and why dollar strength is wreaking havoc around the world. - Nexo is a security-first platform where you can buy, exchange and borrow against your crypto. The company ensures the safety of your funds by employing five key fundamentals including real-time auditing and recently increased $775 million insurance on custodial assets. Learn more at nexo.io. - Chainalysis is the blockchain data platform. We provide data, software, services and research to government agencies, exchanges, financial institutions and insurance and cybersecurity companies. Our data powers investigation, compliance and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases. For more information, visit www.chainalysis.com. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - I.D.E.A.S. 2022 by CoinDesk facilitates capital flow and market growth by connecting the digital economy with traditional finance through the presenter’s mainstage, capital allocation meeting rooms and sponsor expo floor. Use code BREAKDOWN20 for 20% off the General Pass. Learn more and register at coindesk.com/ideas. - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsors today is “Razor Red” by Sam Barsh and “The Life We Had” by Moments. Image credit: John M Lund Photography Inc/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	In total, the Dixie has moved more than 20% so far this year. Of the major financial crises over
0:05.8	the last 30 years, only the global financial crisis in the 2015 yuan devaluation have featured
0:11.3	a more serious spike in the Dixie, although in general major crises are associated with
0:15.9	dollar strength as people flood to what they perceive to be the safest currency. However,
0:24.9	a major difference this time around is the lack of interest from U.S. policymakers in taming the strong dollar.
0:27.9	Welcome back to The Breakdown with me, NLW.
0:32.1	It's a daily podcast on macro, Bitcoin, and the big-picture power shifts remaking our world.
0:37.1	The breakdown is sponsored by nexo.io, chain aliasis, and the big picture power shifts remaking our world. The breakdown is sponsored by
0:38.8	nexo.io, chain aliasis, and FtX, and produced and distributed by CoinDes. What's going on, guys? It is Tuesday,
0:47.7	September 27th, and today we are discussing why for the rest of the world, the dollar is our currency
0:54.0	and their problem.
0:56.3	Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it,
1:00.0	give it a rating, give it a review, or if you want to dive deeper into the conversation,
1:03.6	come join us on the breakers discord. You can find a link in the show notes or go to bit.ly
1:07.9	slash breakdown pod. Also a disclosure, as always. In addition to them being a sponsor
1:12.5	of the show, I also work with FTX. All right, folks, I am excited for this show today.
1:19.3	I mentioned yesterday that Sunday night saw some serious fireworks around the pound in the UK.
1:25.1	That continued into Monday, and what's more, the British pound isn't the
1:28.9	only major currency to have issues recently. Last week, as we'll see, the Japanese yen also had a
1:35.1	rough run of it. Joe Wisenthal from Bloomberg noted on Monday that every major currency in the
1:40.8	world was down against the dollar. Headlines are blaring that big problems are brewing,
1:46.3	such as this one from Bloomberg, which says, Morgan Stanley says dollar surge tends to end in crisis.
	...

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