“This is a story that ends very, very badly.” - Brent Johnson
Apologies for the dramatic headline, but every crisis has an opportunity.
Today I want to share a conversation with Brent Johnson, manager of the Santiago Gold Fund.
Brent is the creator of The Dollar Milkshake Theory - a theory that outlines a global currency crisis where eventually, everyone looses. The name was inspired by the final scene in Daniel Day Lewis’ “There Will be Blood”.
Brent often pulls from creatives in the fictional world - his fund is named after Santiago the Shepard, from the 1988 novel, The Alchemist.
The Dollar Milkshake Theory supports the strengthening of the US dollar and gold simultaneously. Among gold bugs, any argument for a strong USD is met with provocative confrontation (especially if it is proving true).
As a result, Brent often finds himself in the crosshairs of a Twitter assault. Find him sparring on a daily basis, @SantiagoAuFund
Brent is a USD Bull, to the extent that he believes it will be the last domino to fall in a global currency crisis. Vulnerable nations will be first to suffer crippling inflation, but this game will work its way around the planet before making its final stop in the USA.
He has a short list of currencies he believes are already on the way out, we touched on a few of them.
How will he know when the USD is about to crash? I asked him that too.
He quoted Churchill in our interview: “It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”
I’ve slid a few highlights below, but I encourage you to watch the whole interview by clicking here.
Global Markets: Where is the money going?
“Individuals can go to cash, big institutional money can’t. If you are running a big fund you can have 5% cash, but can’t have 50% cash.”
“It’s not a matter of whether they will invest, it’s a matter of where they will invest.”
“US equities will keep going up, not because there is great value, but because they are one place people can seek shelter from the global storm.”
Future of the US Dollar:
“All currencies are junk, and will lose their intrinsic value.”
“One will outlast all the others, that is the USD.”
“Gold and USD can both rise relative to all other fiat currencies.”
Why do people argue against the Dollar Milkshake Theory?
“The biggest mistake precious metals investors make is focusing on dollar supply, they don’t focus on dollar demand. Demand for USD is even larger outside of the US than in.”
When does the USD game end?
Watch the interview here
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