Brent Johnson has become well known for his dollar milkshake theory. He does a weekly video called Milkshakes, Markets, Madness that is a commentary on markets and especially the US dollar. I’ve been following him for a number of years and I think he presents a good counterargument to all of the dollar doomers that claim the dollar will be collapsing any day now.

Peter Schiff is one of these dollar doomers, and there are lots of others as well. Now don’t get me wrong, I like Peter and I think he does a great job of explaining economics to the layman with a lot of his arguments. Plus the fact that he despises bitcoin probably doesn’t exactly endear him any less to me. But the fact of the matter is, he’s been pitifully wrong on his timing in calling for the demise of the dollar. I think he’ll be right in the end, but in the meantime, if you followed his investment advice for the past 10-15 years you will really have underperformed the market.

Brent is essentially the anti-Peter Schiff. Not in that he doesn’t agree on the long term demise of the dollar, but rather that he simply believes the dollar is in a much better position than any other global fiat currency. As such, he believes the dollar will essentially be the last one to fall. I think he makes some really good points with his arguments and I think that as an investor, one really needs to be open-minded and willing to hear lots of different arguments in order to make good decisions. Listening to Brent and Peter on a weekly or monthly basis will provide you with lots of opposing viewpoints…and some entertainment along the way.

Anyway, I thought this week’s episode by Brent was particularly interesting and he did a really good job of pointing out some of the reasons that the US dollar is, despite all it’s weaknesses, still in the driver’s seat globally. With the incompetency and insanity of US policies constantly front and center in our news flow, it’s easy to forget just how huge the advantages are that are built into the global financial system for the dollar. Given these huge advantages, it’s easy to underestimate how long this game can last, no matter how incompetent our political leaders are.

Brent does a good job of pointing this out, and making the point that it doesn’t matter how unfair and immoral the system may be…it’s the system that we’re part of whether we like it or not. As such, it’s probably a good idea to understand the system as best as you can if you want to survive the next 5-10 years with your finances intact.

Check it out…