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MacroVoices #298 Jeff Snider: I agree with Janet Yellen and Jay Powell

Macro Voices

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What Happens When There's More Dollars in the Global Dollar System?

In the euro dollar system, when there's more dollars in this offshore monetary system, what happens is they end up in official hands. And if you have a global dollar shortage, obviously there's fewer lars flowing through these foreign central banks, which means they can't buy as many treasuries as they might have beforehand. In rarer and more extreme situations of a dollar shortage, these foreign reserve managers actually have to sell their treasuries to try to make up their dollar short fall. Soit's following us treasuries or selling treasuries. Its not, you know, it's not a negative for the treasury market. It's a negative sign for the monetary system

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