He frames the dollar's past strength as a function of market performance and capital attraction, warns that recent fiscal choices have already undermined confidence, and reiterates his long-held case that gold will become the true safe asset as fiat rivalries crumble. He also reminds listeners that financial illusions — like digital money — can't replace real goods.

He opens by explaining why the dollar has looked strong lately, and why that strength is as much about flows into U.S. assets as it is about fundamentals:

Well, I think one of the reasons the dollar was strong is there was a lot of investment flows into the US. The US stock market had done much better than global markets. And so I think a lot of capital was attracted into our markets. And of course, you want to buy US stocks, you need US dollars. And also with the strength of the dollar, I think there was demand for US bonds, because with an appreciating currency, that meant that foreigners who bought US bonds, you know, had a gain on the foreign exchange.

Peter quickly shifts to politics, arguing that the illusion of a fiscal pivot has already been shattered and that recent promises have made deficits worse, not better. His point is that policy expectations matter for currency confidence, and that rising deficits can undo what short-term capital flows once supported:

I mean, I think it's already been triggered. I think a lot of it had to do with, you know, Trump and the big beautiful bill. I mean, that kind of burst any illusions or delusions that people might have had that Trump was going to be fiscally responsible and that Republican Congress was going to somehow reverse the excess spending of the Biden era. So that didn't happen. In fact, you know, the Trump budgets are going to be even bigger deficits than Biden.

From there he goes straight to what he thinks replaces an eroding fiat consensus: gold. He frames this not as a nostalgic preference but as a market-driven switch once the dollar's special status faces real stress — and he dismisses the idea that another fiat like the euro or yen could simply take its place:

I think that's already happening. And I think gold is going to be the replacement. And I've said this for some time because a lot of people have had a false sense of security with respect to the dollar status because they just didn't see any other fiat currency that could rival it. And I agree that it would make no sense to abandon the dollar as, you know, the reserve and just anoint the euro, you know, or the yen.