Part 11/16:
A significant segment of the discussion involves the "Dollar Milkshake Theory", positing that the US dollar will continue to dominate due to its role as the world's reserve currency. Comparing the historical weakening of the British pound against the dollar, Preston highlights that the dollar has been steadily strengthening since the 1970s, swallowing currencies worldwide.
This dominance is reinforced by the Eurodollar market, where USD-denominated assets float outside US jurisdiction, allowing international actors to hold dollars in a system largely immune to US policy whims—yet heavily dependent on the dollar’s perceived stability.