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 will opine 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 will explain 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.

John Rubino is the founder of the popular financial website DollarCollapse.com. He is co-author, with GoldMoney’s James Turk, of The Money Bubble: What To Do Before It Pops, and author of Clean Money: Picking Winners in the Green-Tech Boom (Wiley, 2008), The Collapse of the Dollar (also with James Turk), How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street (Morrow, 1998). After earning a Finance MBA from New York University, he spent the 1980s on Wall Street, as a Eurodollar trader, equity analyst and junk bond analyst. During the 1990s he was a featured columnist with TheStreet.com and a frequent contributor to Individual Investor, Online Investor, and Consumers Digest, among many other publications.

Peter Tallman, P.Geo, is President, CEO and Director of Klondike Gold Corp. Mr. Tallman is an experienced mining entrepreneur and Professional Geologist. He has 35 years experience in the mining industry. Mr. Tallman has worked in Canada, Chile, Mexico, and Australia. His career has included the grassroots discovery and delineation of three mineral deposits, two of which have been mined, diversely including one gold, one antimony, and one zinc deposit. He is currently Director of Fiore Exploration Ltd. which is focussed on South America exploring for gold in Chile. Mr. Tallman has held either Founder, Director, and/or senior management positions at a number of publicly listed Canadian mining companies continuously over the past 20 years.