Why the US Dollar Is Booming And Creating A Possible Doom Loop

Odd Lots

Bloomberg

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4.4 • 1.6K Ratings

🗓️ 18 July 2022

⏱️ 51 minutes

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Summary

Every time a crisis hits, you get a new round of people warning about the end of US dollar dominance. The Covid crisis and its aftermath is no exception. It may be that the world will change over the long run in some way that does help to dislodge the greenback. But in the meantime, concerns about a looming recession mean that the dollar is booming against other currencies. It's at a 20-year high against the euro, and it's soared against the yen as well. So why has the dollar been rising? And what is the impact of that on the world economy? On this episode, we speak with Jon Turek, the founder of JST Advisors, and the author of the Cheap Convexity Blog, about why the dollar's been so strong, and the risk of a potential "doom loop" that will drag down the global economy.

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Transcript

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0:00.0	Do you know what your interest rate is on your savings account?
0:02.7	I bet it's lower than you think.
0:04.4	Go ahead and look.
0:05.2	And in the meantime, I'll tell you about US Treasury bills on public.
0:09.2	As of 9-1-2023, you could earn an annualized 5.5% yield with T-bills when held to maturity.
0:16.2	That's the highest rate on six-month Treasury bills since the year 2000.
0:20.0	Go to public.com slash T-Bill podcast to get started.
0:23.8	This is a paid endorsement by public.com,
0:26.0	fees and conditions apply.
0:27.3	Treasury accounts at public.com or through Geco Securities Inc.
0:30.4	Member Finra and SIPC.
0:31.8	Not FDIC insured?
0:33.1	No bank guarantee.
0:34.0	May lose value.
0:34.8	Full disclosures can be found at www.public.com slash T-Bill podcast.
0:56.3	Hello and welcome to another episode of The All Thoughts Podcast.
1:23.2	I'm Tracy Alloway.
1:24.3	And I'm Joe Weisenthal.
1:25.6	Joe, happy parity day to you.
1:27.9	So I looked.
1:28.7	I actually got a little late this morning.
1:31.7	I don't think 5am instead of 4.
	...

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