Could the USD Lose its Reserve Currency Status?
Since 1944 the United States Dollar has been the reserve currency of the world. Is that about the change?
The US Dollar replaced the British Pound as the reserve currency in 1944. The decision was made primarily after the United States helped the Allies defeat the Axis powers during World War 2. The reserve currency status is largely dependent on the size and strength of the countries whose currency is the reserve. The United States has held the status of reserve currency for almost 80 years, but many believe this is about to change.
One of those people who believes the status of the US dollar being the reserve currency is Brent Johnson of Santiago Capital. In this interview Brent joins Blake Morrow of Traders Summit to discuss the “US Dollar Milkshake theory” and what it is all about. Brent goes on to discuss the topics ranging from how long it would take to “dethrone” the United States Dollar as the reserve currency of the world, who the possible successor be if there is one, and what roles that gold could play in all this. Brent also discussed how gold and crypto are also used as inflation hedges and what they role they could play in the weeks/months/years ahead. When discussing gold and crypto, Brent talks about the important of diversification and how best to approach crypto in the face of possible government opposition in the future.
Video Interview Chapters
00:00 – Intro Brent Johnson
00:57 – How the Milk Shake Theory Came About
05:00 – Dollar Index
13:00 – Gold and Crypto Roles vs. the United States Dollar
16:00 – Would would replace the USD as the reserve currency
About Brent Johnson
Brent Johnson brings over twenty years of experience in the financial markets to his position as CEO of Santiago Capital where he manages $175mm for High Net Worth families via separately managed accounts and a private fund.
Brent enjoyed more than nine years as a Managing Director at Baker Avenue Asset Management, a $2 Billion Asset Manager and Wealth Management firm, with offices in San Francisco, Dallas and New York. He was the lead advisor for several of the firms largest clients.
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