The Dollar Milkshake Theory Explained

The US Dollar is the bedrock of the world’s financial system. The availability, cost, and level of the dollar can have an outsized impact on economies and investment opportunities. But, more important, is the rate of change in the level of the dollar. If the level of the dollar moves too quickly and particularly if it rises too fast, then problems start popping up all over the place. And that is why everyone should have a plan for a rapidly rising dollar.

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[colbyisthewalrus]

Wow, the production value on this segment was really impressive. I didn't realize the Dollar Milkshake Theory could be an action film.

[sandymilne]

It’s important to give credit to Brent Johnson of Santiago Capital for being the first to articulate this theory. Kudos to Roger for mirroring the theory, but the real credit goes to Brent Johnson.

[lordkingston]

Pay attention and do what??? 😂😂😂😂. It’s like paying attention to an imminent train crash while sitting in the train.

[Obiika]

Excellent video. Concise and accurate. I'd like to point out that two times during the video you've asked "but what are you going to do ?" or "what's the alternative ?" ; well, some countries tried to steer away from the dollar as the only currency to exchange their goods in. For example, Libya tried to sell their oil in a currency that's not the dollar, but as soon as they attempted that, they were hit with the full might of a US-led coalition.

[russellschaeffler]

Great video and explanation. I would like to see a video in this format explaining the relationships between currency prices, government bonds prices, and interest rates.

[YYfilms]

Leaving a comment as a witness me moment, as the UK almost collapsed today and started to QE to try and prop up the quickly falling currency it shows they didn’t have any control on the over leveraged banks and funds and not this theory is becoming practice in front of us

[brendansmith]

This rising dollar is actually causing deflation in my trips outside of the USA. The euro is now at parity with the dollar, which hasn't happened in 20 years. A fifteen percent drop in the euro actually means general inflation = deflation for an American traveling to Europe. The issue is the ecb is much less keen to raise interest rates than the fed, plus their reliance on Russian oil which obviously couldn't have been predicted . Japan is even worse.

[martinan]

Finally! Thank you! I heard Brent Johnson explain this with words but this for-dummies explanation did the trick!

[smsaifullah]

This is great precise of the point please make more like this love it the way you explained very easy to understand thank you great effort keep it up

[lawrenh]

Kudos to the animator and production team! Gorgeous work; please credit them.

[petrofx]

Despite the Milkshake theory being a few years old now, this video summary of it posted only 11 months ago has aged very well indeed. Part of Friday's (2022-08-26) post mortem on the 1000 point DOW Market drop included a note that 20% of S&P companies CANNOT make interest payments on their debts with current cash flow.
When we add a few more interest rate hikes, the defaults needed to stir the milkshake may be ready to serve. Watch for rumors of an Italian default or € exit threat next month after elections there. ITALY can't make its debt payments as it is now. The ECB [and Fed] are scheduled to raise rates before the ballot there.
Interesting times ahead.

[BusinessTipsWithYulianna]

So happy you posted this! This is definitely something that should be talked about a lot more.

[ForwardGuidance]

WOW! Awesome video. I love it, great job producing it. It really brings it home (no pun intended).

[echoingowl]

Fantastic Explanation and Presentation. The Key facts are so well addressed.

[baycreekhistorydetectives]

Wonderful explanation and animation. The originator of the theory could not have done a better job.

[JonnyMReck]

This is a great coverage - I’d add a reference to the movie There Will Be Blood

[rozariomesiti]

This aged incredibly well. DXY to the moon

[jdawg]

The Bank of England restarted QE and bond purchases in order to bail out insolvent pensions today. With inflation at about 10% Y/Y. Bizarre.

[cv-edf]

We all needed this explained just like this! 👍💰🥤

[typicalbangali]

Can’t believe I’m watching this theory happening in real time in my country Bangladesh 😭😭😭