The Moment You Realize The Dollar Is Done For Good

Appears to me the US economy is already strong and it's going to get much stronger cuz we're looking at the big beautiful bill looking a lot of stimulus. My guess is um the Fed is certainly not going to hike and probably going to cut. That would be wonderful if we were undervalued. We're not undervalued. We're toward the top of the uh valuation range historically. We're bearish on the US dollar mainly because sort of the top of the historic range in terms of purchasing power and uh we own copper. It's not a genius trade. It's a big consensus trade. Uh there's no supply coming on of meaningful supply very tight for the next 8 years. And obviously you have a big add-on from AI and data centers. We're not long uh copper equities as much as we are. the we just keep rolling the front end. We have some gold that's mainly a geopolitical trade. It's not so much a monetary trade. We're short bonds. >> I don't necessarily expect to make money short bonds, but I think we might make a lot. If I'm right on the economy and it's a disinflationary growth, I probably break even. I don't lose anything, but it allows me to hold the other assets I mentioned. If I'm wrong and the strong growth creates inflation, it wouldn't be that unusual if the Fed were to cut into a booming economy for inflation to take off, particularly what's going on in commodities. >> Kind of feels like the entire game plan for what comes next was just laid out by one of the most prolific investors of our time. And this isn't just some successful investor. This is a man with strong ties to what many would call the global elite and also the White House. In fact, I'll break down why he might as well just be in the White House himself. Stanley Ducken Miller, if you didn't know, is a multi-billionaire investor and he is a former hedge fund manager. the fund that he started back in the 1980s. He closed in 2010 and it had around 12.1 billion in assets under management at the time, but he continues to invest. In 1988, Stanley Ducken Miller was actually hired by a man named George Soros at his quantum fund. and Stanley and George Soros famously broke the Bank of England when they shorted the British pound in 1992, making over 1 billion in one trade. And this happened during what was called the 1992 sterling crisis. But once again, Mr. Ducken Miller here is not just a wildly successful investor. He also happened to be the mentor to who was now the Treasury Secretary Scott Bessant and believe it or not the potential incoming Fed chairman Kevin Walsh. So these guys all know each other very very well and I wouldn't be surprised by the idea that at this moment they are probably all on the same page. But what exactly is this game plan and what does this mean for you and your money? Well, according to Stanley Jockey Miller, the economy is booming and it's only going to continue to get stronger. But with that, the Fed is actually more likely to lower interest rates than to hike them. Now, lowering interest rates in a time of high growth would typically be a little bit concerning because it might lead to higher inflation. Lowering interest rates can lead to inflation because lower interest rates encourage borrowing and investment in the economy and that investment can outpace the growth of new supply which will lead to a higher price. raise demand, keep supply constant or not keeping up with the pace of the increase of demand and you get higher prices. But what people like Stanley Duck and Miller are keeping in mind here is that technology is increasing productivity and potentially is creating deflationary effects on the economy. Higher productivity means that you get more economic output for the same inputs, which means there may not be an increased demand for labor or other goods and services, which would lead to lower prices. In that case, the economy can continue to grow without having inflationary impacts. And this is what Stanley Ducken Miller seems to be betting on. But he's not betting on that by buying up tech stocks. No, no, no. He says that he believes that stocks are at the upper band of valuations. And we can kind of see how this is playing out because companies are losing their valuations on news headlines or how they're also beating earnings and then having their stock prices decline. companies have to be accelerating their growth beyond expectations just to justify the current prices and especially for any higher valuations than what they have now. But what very few of these investors or people in general are really talking about right now is the labor market. It's almost like these investors and politicians don't really care that much about that. We just saw the founder and former CEO of Twitter and the current CEO of the payments company Block, which was formerly Square, Jack Dorsey, announced that he's laying off 40% of Block's workforce, basically blaming it on AI. And uh when this happened, the Block share price jumped by 20 plus%. Now, a lot of people are questioning whether or not this is an AI story or whether it's really much more about poor management where Jack Dorsey may have potentially overhired the way that he did at Twitter. But the truth is that it doesn't really matter because the result of this action might be the same. CEOs right now are seeing that in order to stay ahead in the software industry, they need to make massive cuts before any of their competitors do it. and they can actually get rewarded by the markets for doing so. In January 2026, employers have already announced 108,000 job cuts, which is a 118% increase from the 50,000 job cuts announced in January 2025. This marks the highest January total since, you guessed it, 2009 during the financial crisis. If we see layoffs continue at this pace into 2026, then the deflationary loop that the Catrini article pointed out could be something to really consider as being on the table. In the Catrini article, they point out a potential scenario where AI investment leads to a lower demand for employment. And that lower demand for employment or layoffs would lead to there being less demand in the economy as people have less money to spend. As people have less money to spend, these companies have to protect their margins and they do so by potentially investing further into AI or by laying off even more of their employees. Now, in some of the wellthoughtout responses to the Citrini article, some have pointed out the idea that, well, look, uh, AI is not that capable yet, and even if it were that capable, it doesn't mean that companies are going to adopt it that fast. But what I think they might not have taken into account is this idea that maybe companies don't need to adopt it or even have it be that capable before these companies start overreacting and that alone being something that could send us into a deflationary cycle. Now, I'm not a financial adviser, and none of this is financial advice, and I highly advise against taking financial advice from a random guy walking around a park talking to a stick. But Stanley Duck Miller himself said that he's long gold and not even as a monetary play, but more as a geopolitical play. The problem here is that people have to figure out where to put their money right now, and the US stock market is just too risky. So where do you put it? You put it into gold. As I mentioned, he's also buying copper which is at a structural deficit and has real demand. The thing about silver, right, is that it is also a monetary metal. So if the monetary piece comes out of the play, then you don't have that riding in your favor. Whereas with copper, it's purely an industrial play and there are structural deficits in that market. But I don't know, maybe I have completely lost the plot. What did I miss? Where did I get completely wrong? Or how could I be looking at this differently? Let me know in the comments down below. I'm going live on Saturday at 2:00 p.m. Eastern, and we're talking about this and much more. So, be sure to join me there. And if you haven't already, you got to subscribe to my live show that I do with Ben Lev. It's called Memes and Markets. We go live every Tuesday and Thursday at 12:00 p.m. Eastern, and we discuss topics like this and more. We just had Charles Hoskinson on, so be sure to check that out at the link in the description down below. If you want access to what I'm doing with this kind of information in real time, feel free to join my weekly economic newsletter on my Patreon or join channel memberships where we're doing a weekly market preview as well as exclusive videos for the macro analyst tier members. I'm Keith D here to talk everything money and markets. And if you got anything from this at all whatsoever, be sure to hit that like button and subscribe. And until next time, peace.

📹 Become a Channel Member (Exclusive Videos): https://www.youtube.com/channel/UCAFqzhDwJd12pBDgdk-2GqA/join 📖 Or Join My Patreon (Weekly Newsletter): https://www.patreon.com/c/theinneroperator/ 🎙️Subscribe to Memes and Markets: https://www.youtube.com/@MemesandMarketsPod For a 1:1 conversation, book your paid consultation here: https://calendly.com/keithsmithspeaks All Sponsorship & Business Enquiries: keithdenterprise@gmail.com Stanley Druckenmiller may have just laid out the macro game plan for what comes next — and almost nobody is paying attention to the full picture. In this video, I break down why Druckenmiller believes the U.S. economy is strong and could get even stronger… while the Fed may still cut rates. What happens if you lower interest rates into a booming economy? Inflation? Or something very different? We dive into: Why Druckenmiller is bearish on the U.S. dollar Why he’s long copper (and not copper stocks) Why he owns gold as a geopolitical hedge Why he’s short bonds Why he thinks productivity from AI could offset inflation And why stocks may already be at the top end of historical valuations But there’s a deeper layer here. Layoffs are quietly accelerating. CEOs are getting rewarded for cutting workers and investing in AI. January 2026 job cuts just hit their highest January level since 2009. Is this the beginning of a deflationary AI loop?