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Dollar Milkshake Theory
Posted on 7/12/22 at 5:58 am
Posted on 7/12/22 at 5:58 am
A few days ago, I saw some people talking about this on twitter and I had never heard of it. It really is a fascinating theory that can be summarized as the USD taking over all other currencies and destroying their economy.
Once that happens, Bretten Woods 3 then takes over and we get a new world reserve currency.
Being in Colombia, I am watching this in real time. People are going crazy for USD right now. So much so the new president elect has addressed it.
Curious the MT thoughts on this theory. Below are some really good educational videos regarding the Milk Shake Theory.
Longer Version
Cliff Notes Version
Once that happens, Bretten Woods 3 then takes over and we get a new world reserve currency.
Being in Colombia, I am watching this in real time. People are going crazy for USD right now. So much so the new president elect has addressed it.
Curious the MT thoughts on this theory. Below are some really good educational videos regarding the Milk Shake Theory.
Longer Version
Cliff Notes Version
9
Posted on 7/12/22 at 6:12 am to I Love Bama
Cliff notes version was very good. We’re seeing this happen in real time. Dollar just overtook the Euro
Posted on 7/12/22 at 6:24 am to I Love Bama
Pretty spot on. I was in Argentina earlier this year and they were gobbling up US currency too.
NPR planet money had a podcast years ago called “hunting for the hundreds.”
Basically saying the $100 represented 75% of Us currency or something and after some research they were able to determine close to 80% of US currency was in international circulation.
NPR planet money had a podcast years ago called “hunting for the hundreds.”
Basically saying the $100 represented 75% of Us currency or something and after some research they were able to determine close to 80% of US currency was in international circulation.
Posted on 7/12/22 at 6:29 am to I Love Bama
That was very interesting
Posted on 7/12/22 at 6:41 am to Shepherd88
Cambodia uses US currency. Wild huh?
Comes right out the ATMs.
Comes right out the ATMs.
Posted on 7/12/22 at 7:06 am to I Love Bama
Currency is only actually worth something if people trust it. If your lower class doesn’t trust to accept, it’s really not worth much. So this makes complete common sense, people would rather exchange something they trust and believe has a value then their local currency.
Posted on 7/12/22 at 7:46 am to Teddy Ruxpin
Baldona got it. If I use Argentina pesos I’d pay an official exchange rate. If I paid a vendor in US dollar then they’ll give me a 25% discount by the black market exchange rate. That vendor will then likely hoard that US currency and not spend it bc they trust it more than their own. This is happening all over the world.
Posted on 7/12/22 at 8:08 am to Shepherd88
So, what’s the end game?
Global world currency or US domination?
Global world currency or US domination?
Posted on 7/12/22 at 8:21 am to BamaCoaster
I think this supports the idea of why we give other countries so much damn money. We’re doing it to keep their economies afloat and support our dollar.
Posted on 7/12/22 at 8:28 am to I Love Bama
Yeah man, welcome to the SHOW!
Been watching this one over time and it has played out perfectly … the US Federal Reserve might drive us crazy but most other economies around the world will go down first pumping money into the USD and related assets (especially with Japan falling on the currency sword and Europe going full retard)
Been watching this one over time and it has played out perfectly … the US Federal Reserve might drive us crazy but most other economies around the world will go down first pumping money into the USD and related assets (especially with Japan falling on the currency sword and Europe going full retard)
Posted on 7/12/22 at 9:09 am to Shankopotomus
quote:
especially with Japan falling on the currency sword and Europe going full retard
To be fair Japan has a huge portion of their assets in China right now
Wait...so do we
To OP: Milkshake Theory is just a tradeable thesis that the risk is deflationary not inflationary. In the banking system our Treasuries are a better form of money than cash is. There is scarcity for that collateral combined with excess counter party risk. That is going to suck up all the capital back into the banking system and only the most credit worthy institutional borrowers will get loans (the real reason for ZIRP not the Fed).
Posted on 7/12/22 at 9:19 am to I Love Bama
Colombian peso is collapsing. You see it going down even more? Buddy and I are now looking at buying a condo in Medellin
Posted on 7/12/22 at 9:52 am to TheOcean
quote:
Colombian peso is collapsing. You see it going down even more? Buddy and I are now looking at buying a condo in Medellin
I think so. Petro hasn't even taken office yet. I think we get to 5,000 COP to USD but that is really just my wild guess like anyone else.
USD gaining strength, Petro coming in with his expensive social programs...
Just seems like a perfect storm.
The real estate market is changing rapidly as the Colombians who are worried about Petro are selling their real estate and converting to dollars.
For the first time since I have been paying attention, people are lowering their prices and really wanting to negotiate.
I would advise buying for personal pleasure and not really as an investment at this point. Although unlikely, it could get ugly.
At 5,000 COP to USD they are really unstable.
Posted on 7/12/22 at 9:54 am to wutangfinancial
100% - the collateral play is something I have been considering since there seems to be an actual dollar shortage worldwide based on this thesis as opposed to the reverse
And as a bonus on this, China is increasing their M2 right now while Europe is projected to start cutting aggressively into Q3 and Q4 (!!) - only increasing the DXY even higher since the Euro and JPY are so much of that index
And as a bonus on this, China is increasing their M2 right now while Europe is projected to start cutting aggressively into Q3 and Q4 (!!) - only increasing the DXY even higher since the Euro and JPY are so much of that index
Posted on 7/12/22 at 10:42 am to I Love Bama
Thanks man. Where would you recommend buying in Medellin?
Posted on 7/12/22 at 11:33 am to TheOcean
Really depends on what you want.
If you are looking to entertain, have great views, be next to all the best restaurants - El Pobalado
If you want a walkable area with good restaurants (not great views) - Laureles
If you want a middle class life and are more concerned with saving money - Belen
Almost all the gringos are in El Pobalado and the prices for everything in the area reflect that. All the Colombians you meet in this area only care about how much money you have and are not a good representation of Colombia.
But if you are looking to live a rockstar type life for cheap, this is the best place in the world.
If you are looking to entertain, have great views, be next to all the best restaurants - El Pobalado
If you want a walkable area with good restaurants (not great views) - Laureles
If you want a middle class life and are more concerned with saving money - Belen
Almost all the gringos are in El Pobalado and the prices for everything in the area reflect that. All the Colombians you meet in this area only care about how much money you have and are not a good representation of Colombia.
But if you are looking to live a rockstar type life for cheap, this is the best place in the world.
Posted on 7/12/22 at 1:08 pm to I Love Bama
Thanks man. I think El Poblado is the only place that makes sense. Can gringos get loans in Colombia? I thought we can only pay in cash
Posted on 7/12/22 at 1:35 pm to TheOcean
No loans. Bring cash. Happy to share my Colombian lawyer if needed. Dude speaks perfect English and is very trustworthy.
Posted on 7/12/22 at 1:39 pm to BamaCoaster
quote:
Global world currency or US domination?
This post was edited on 7/12/22 at 1:51 pm
Posted on 7/12/22 at 1:39 pm to I Love Bama
Sweet. You got anyone trustworthy who works as an agent?
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