| The Dollar Milkshake Theory holds that when times become financially difficult globally, like now, it plays in the dollar’s favor. And the proponents of that theory believe there is no reason at all to give up on the dollar. In fact, they think that times like this when the dollar is a bit weaker, you should be taking a stronger view of the dollar. For example, a recent guest on this show who is a proponent of the Dollar Milkshake Theory is Keith Weiner of Monetary Metals.
The Dollar Milkshake Theory is in fact more than a theory. It is a proven dynamic that we have witnessed in times of global financial stress such as the 2008 crisis, and more recently with the supply side problems related to Covid and the Ukrainian war. With rising interest rates, foreign borrowers of dollars had to liquidate their assets and buy dollars to pay their debt obligations which caused the dollar to rise, hence the term Dollar Milkshake Theory. During times of trouble the U.S. sucks its NATO partners dry as money flows back into the U.S. at the expense of trading partners in the U.S. empire.
But what happens if interest rates continue to rise and/or if adversarial countries decided that they have had enough of the weaponization of the dollar? What happens to the fate of the dollar if those countries have orchestrated a competing method of trading that says, “we no longer need dollars?” That kind of tectonic shift in the global financial architecture is in fact taking shape right now. John Rubino opines on that and other reasons why he thinks the days of dollar hegemony are numbered.
Peter Tallman, the President & CEO of Klondike Gold, has worked hard to outline the first 500,000+ gold resource ounces from the hard rock source from where 20 million ounces of gold were mined in the great placer gold rush of the late 1800’s. Peter explains why, geologically, there is reason to anticipate that 40-to-60 million more ounces gold remain on Klondike’s massive project in the Yukon located just minutes from downtown Dawson City in the Yukon. | 