Dollar Shortage - What Does That Mean in Practice?

There is a lack of dollars in the global financial system. The inability for banks to access the wholesale dollar funding market has led to negative basis rates that are going to put more strain on the financial system. If you start to look at just failures to deliver, which is done by the New York Fed for the primary dealers, there's also a shortage of treasury collateral. And so what that is kind of telling you is that there is broadly a lack of Dollars.

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