Brad Setser on the dollar and the world's trade imbalance

Subtext by Zerodha · Jun 22, 2026 · 1h

Brad W. Setser, Senior Fellow at the Council on Foreign Relations and one of the most respected voices on global capital flows, joins us for a wide-ranging conversation on what is driving the dollar today, why China's export boom is a problem for the whole world, and what happens if the AI bubble bursts.

Timestamp:

0:00 – Introduction

2:38 – History of Dollar Strength & What Drives It

5:26 – AI & Private Capital Flows into the US

9:08 – Strait of Hormuz Crisis & Oil Markets

12:49 – UAE Leaving OPEC: What It Signals

15:21 – Why Surplus Countries (China, Korea, Taiwan) Keep Buying Dollars

19:23…