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The Strong Dollar Crisis Nobody Sees | George Gammon Explains

The Gold Exchange Podcast

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**Podcast:** The Gold Exchange Podcast

## Transcript

Hello everyone, I'm Dixon Buchanan with Monetary Metals and I am doing my best to fill in for our regular host Benjamin Nadelstein who couldn't be with us. But I'm here today with macroeconomic expert George Gammon. And George, I'd love to just start with what is your high-level macro view over the next 6 to 12 months? I think what everyone is missing right now is the dollar, believe it or not, because the narrative is the dollar is crashing. And the narrative is that foreigners are dumping treasuries because they want to kind of divorce themselves from the United States.

And I think the bears are a little surprised. The DXY is still trading at roughly 99. And the bulls are kind of, you know, everyone's pointing at them saying, well, I thought the dollar was going to 110. And again, I'm just using the DXY as a proxy. But I think once you scratch beneath the surface, it tells a much, much different story. So as an example, most people know the BOJ has been trying to defend the yen at 160 to the dollar. And so they've been doing this for like, call it six months, nine months.

And the DXY, we have to remember, is 13 or 14 percent yen. So we have to realize that that 160 number is not a market number at all. So you sit there and ask yourself, OK, what would the market number be? Nobody knows, but it sure as hell wouldn't be 160. Say it would be 200 or 210 or something like that. So then you've got to ask yourself, OK, where's the DXY if yen is at 200? OK, it's not at 99. I don't know the exact math behind it, but is it 105, 110?

And if the DXY is at 110 versus 99, it's a completely different narrative, like totally different narrative. Now, in connecting the dots here, I think most people have read in the news a lot of the central banks, such as Turkey, are not only selling gold, but they're selling their U.S. treasuries. In fact, it was dramatic with the Turkish central bank from the standpoint of like a month ago or two months ago. They had 15 billion in treasuries and it's all the way down to almost zero. So, you know, what are they having to do right there?

Well, they've got problems because they've got to import all this oil and the oil price is going up and then their currency is going down. So you've got to somehow defend that currency. So gas prices don't go up. You get social unrest. We know how this plays out. So they've got to sell those treasuries to get the dollars they need, which is a similar situation to Japan in the sense that they're trying to defend that currency to make sure that the local energy prices don't go through the roof and they get that same type of social unrest. But these are stories that you don't really hear about.

If you do hear about them in the mainstream media, the mainstream media isn't connecting those dots. Another one that directly applies to this is the Indian rupee. So if you look at a five year chart of the Indian rupee, it's ju...

The Strong Dollar Crisis Nobody Sees | George Gammon Explains

Transcript

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Every day you wait, your competitors are finding
edge in conversations you're not hearing.

The Strong Dollar Crisis Nobody Sees | George Gammon Explains

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.