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Tag Archives: currencies

Taking You, The Fed’s Bank Reserves, And Banks’ Checkable Deposits For A Quick Stroll In The Monetary Zoo

Milton Friedman wasn’t trying to be cagey. Quite the contrary, he was recognizing the complexity of the world we actually inhabit and then stating this in perfectly clear language. Things aren’t so simple as positive versus negative, especially when it comes to moving progress forward – or stopping in its tracks. What if progress merely slows; worse, what if it slows down for a very long period of time?Notice below what Friedman was actually saying about “tight” money conditions. It did...

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OK, Bank Reserves; Let’s Do This One More Time

What the hell is a bank reserve? Is it money? Since its very creation is a byproduct of concerted central bank action, the thing sure sounds like it has to be. As we know only too well since 2008, the financial media will uniformly call these things and the creation of more of them “money printing.” If everyone says…Not only that, the accounting. One day, there’s little to no bank reserves on the Federal Reserve’s balance sheet, then, seemingly the next, there’s tons of them. Trillions. How...

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Eurodollar University’s Making Sense; Episode 27, Part 1: Turtle Economics

———WHERE——— AlhambraTube: https://bit.ly/2Xp3roy Apple: https://apple.co/3czMcWN iHeart: https://ihr.fm/31jq7cI Castro: https://bit.ly/30DMYza TuneIn: http://tun.in/pjT2Z Google: https://bit.ly/3e2Z48M Spotify: https://spoti.fi/3arP8mY Castbox: https://bit.ly/3fJR5xQ Breaker: https://bit.ly/2CpHAFO Podbean: https://bit.ly/2QpaDgh Stitcher: https://bit.ly/2C1M1GB Overcast: https://bit.ly/2YyDsLa SoundCloud: https://bit.ly/3l0yFfK PocketCast: https://pca.st/encarkdt...

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If Dollar Is Fixed By Jay’s Flood, Why So Many TIC-ked At Corporates in July?

When the eurodollar system worked, or at least appeared to, not only did the overflow of real effective (if virtual and confusing) currency “weaken” the US dollar’s exchange value, its enormous excess showed up as more and more foreign holdings of US$ assets. Mostly US Treasuries, especially in official hands, but not entirely those. That much is perfectly clear; you can actually see the difference on every chart despite all the QE’s and trillions in bank reserves following after...

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Eurodollar Accounting

One step forward, two steps back. Implicit in the Fed’s big strategy reviewed unveiled by Federal Reserve Chairman Jay Powell at the end of August was an admission that policymakers had screwed up. No minor detail, either, they have messed up big time on the big stuff. Though failing to be explicit about it is so infuriatingly cowardly, it’s at least a definite step in the right direction. Following from that, though, next in line would be to figure out what, exactly, got screwed up and...

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Eurodollar University’s Making Sense; Episode 26, Part 3: Did We Say ‘Transitory’? Nah, Nevermind

———WHERE——— AlhambraTube: https://bit.ly/2Xp3roy Apple: https://apple.co/3czMcWN iHeart: https://ihr.fm/31jq7cI Castro: https://bit.ly/30DMYza TuneIn: http://tun.in/pjT2Z Google: https://bit.ly/3e2Z48M Spotify: https://spoti.fi/3arP8mY Castbox: https://bit.ly/3fJR5xQ Breaker: https://bit.ly/2CpHAFO Podbean: https://bit.ly/2QpaDgh Stitcher: https://bit.ly/2C1M1GB Overcast: https://bit.ly/2YyDsLa SoundCloud: https://bit.ly/3l0yFfK PocketCast: https://pca.st/encarkdt...

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Reopening Inertia, Asian Dollar Style (Still Waiting On The Crash)

Why are there still outstanding dollar swap balances? It is the middle of September, for cryin’ out loud, and the Federal Reserve reports $52.3 billion remains on its books as of yesterday. Six months after Jay Powell conducted what he called a “flood”, with every financial media outlet reporting as fact this stream of digital dollars into every corner of the world, how can there be anything greater than zero in overseas liquidity swaps?Six months is an eternity.While you think about that,...

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Mid-September 2020 Hasn’t Disappointed At All

For the first time, it was encouraging to see and hear quite a lot of people talking about the September calendar quirk. That’s progress; a small but noticeable segment of the financial public setting aside the mythical dogma of bank reserves and asking the right questions. However, I fear that having been “disappointed” by this year’s version of it, how many will end up concluding it was all nothing to begin with? In short, expectations were high (pushed higher by WTI) that something would...

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Eurodollar University’s Making Sense; Episode 26, Part 2: If We Keep Seeing July, What About September and Beyond?

———WHERE——— AlhambraTube: https://bit.ly/2Xp3roy Apple: https://apple.co/3czMcWN iHeart: https://ihr.fm/31jq7cI Castro: https://bit.ly/30DMYza TuneIn: http://tun.in/pjT2Z Google: https://bit.ly/3e2Z48M Spotify: https://spoti.fi/3arP8mY Castbox: https://bit.ly/3fJR5xQ Breaker: https://bit.ly/2CpHAFO Podbean: https://bit.ly/2QpaDgh Stitcher: https://bit.ly/2C1M1GB Overcast: https://bit.ly/2YyDsLa SoundCloud: https://bit.ly/3l0yFfK PocketCast: https://pca.st/encarkdt...

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Another Key Economic Stumble In August Pointing Back At July

With all these warning signs pointing squarely back to the middle or end of July, it’s pretty clear that “something” changed the momentum maybe even direction of the economy’s reopening rebound. There’s also no question about what one key part of what might have been responsible, thus the quotation marks surrounding the word “something.”The federal government had been handing out $600 per week bonuses to the unemployed as well as pretty much anyone willing to lie. As with most government...

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