How the Stablecoin Milkshake will Redollarize the World | Brent Johnson
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There's no question that there is a desire for de dollarization. The United States' ability to use the dollar as the global reserve currency has bestowed upon them this exorbitant privilege, right? And it is true. It's basically global seigniorage, which is the ability to print money for anything you want, if you want to get real simple about it. And as a result, that has engendered a number a lot of hate against The United States' ability to do this. And because the whole world uses the dollar when they operate on the global stage, The United States can then use the dollar to influence the ec
Brent Johnson is the founder of Santiago Capital. He's the creator of the Dollar Milkshake Theory. He last appeared on Bankless. Oh my god. Almost five years ago. I can't believe we've been doing this podcast so long.
It's crazy we get to say that as a time reference.
Brent, welcome to Bankless.
Thanks for having me back.
Alright. First question. It's a high level, but I think it's the subject of the episode. Are we de dollarizing or are we re dollarizing?
Well, I think individuals and perhaps certain entities may be de dollarizing, but on an overall basis, I believe we are in the process of dollarizing.
You're the father of the dollar milkshake theory. That's what we covered in our episode five years ago. Can you recap what the that idea was in 2021 and how it played out?
Sure. So, essentially, the dollar milkshake theory was really a framework for how I thought a sovereign debt crisis would affect markets and asset classes. You know, at the time interest rates were extremely low and had been trending down for forty years. The debts had been trending higher for forty years and I thought we were at a place where the consequences of all that debt would come to fore as interest rates for the first time in a long time started to rise. And so the prediction was that interest rates would rise that would cause the US dollar to rise because the whole world has so much
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