US Dollar Forecast 2020: Why is the Dollar Rising During COVID? (Brent Johnson Explains)

What is the forecast for the US dollar for the rest of 2020? Brent Johnson from Santiago Capital explains why we are seeing strength in the dollar today and why he thinks it will continue for the next two to three years.

What is the ""Dollar Milkshake Theory""?
Even though the Fed had printed a bunch of currency starting in 2009, the dollar actually rose in value over the last 10 years. Just because you print currency doesn't necessarily mean that the dollar is going to fall. The whole world is printing money and they're mixing this liquidity milkshake. And as that capital flows to the United States, it goes into the United States dollar and it pushes the US dollar and US asset prices higher. I largely think that's what's gonna happen over the next two to three years.

Why will the dollar strengthen over the next 2 to 3 years post-COVID?
A common mistake is analyzing the US dollar in a vacuum. Yes, we have all these debts that we can never pay off and we're going to have to print all this currency or do stimulus, but they forget is that everything is relative to other currencies. Fiat currencies all float against each other. The fact is that all the other countries are in the same situation as the US and they're having to print currency as well. Until a new system is designed or until a new alternative to the dollar is established, there's no other place to go, other than the US dollar.

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