Eurodollar University cover image

Turmoil continues as dead canaries pile up in the Euro$ mines. People are noticing the carcasses.

Eurodollar University

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The Impact of Deflationary Money on the Banking System

Jeff Yang: We have deflationary money, deflationary tendencies, and deflationary economic outlook all across the markets as well as in the banking system too. The destruction of money, not the creation of money, that's deflation. If we have a restraint on the monetary supply it could lead to some of the more poorly run banks being exposed as being poorly run. When the tide of money goes out, the deflationary tide of money going out, it exposes those who are swimming naked.

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