#196 Brent Johnson, Creator of The Dollar Milkshake Theory, Explains How The Global Economy Is 'One Big Carry Trade'

The Julia La Roche Show

Brent Johnson, founder and CEO of Santiago Capital, returns for episode 196, in which he discusses the current macro landscape, focusing on Fed policy, global markets, and his Dollar Milkshake Theory. He explores gold's role as a signal of economic stress, the dynamics of carry trades, and potential market volatility ahead.

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Links:

Twitter/X: https://x.com/SantiagoAuFund

YouTube: https://www.youtube.com/@milkshakespod

Macro Alchemist: https://macroalchemist.com/

0:00 Welcome Brent Johnson

1:05 Current macro picture and Fed policy

4:40 Challenges of engineering a soft landing

8:54 What is gold signaling?

14:22 Global demand for gold

17:29 Dollar Milkshake Theory explained

24:11 Geopolitical implications of the dollar system

30:22 Market outlook

37:42 Are markets in a bubble?

41:51 Gold price outlook

45:35 2024 election impact on markets

49:24 Yen carry trade and broader carry trade risks

56:17 The global system as one big carry trade

59:03 Closing thoughts and where to find Brent's work