Eurodollar University URGENT: This Could Trigger A Full-Blown Global Liquidity Crisis
Apr 10, 2025
Why are Treasury yields rising unexpectedly during a liquidity crisis? The podcast delves into the chaos in the Treasury market, highlighting forced sell-offs and the mechanics of dollar shortages. It critiques prevailing narratives around financial turbulence and stresses the emerging risks in wholesale markets, particularly the repo market. Alarming signs of a global dollar shortage are explored, including the depreciation of the Chinese yuan and its implications for the financial system. Understanding these intricacies reveals the potential for a full-blown crisis.
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Dollar Shortage Signal
- Soaring treasury yields during market chaos indicate a dollar shortage, not a flight to safety.
- This shortage triggers liquidations and explains market instability, including plunging oil prices and a crashing Chinese yuan.
Mainstream Narrative Control
- The mainstream media avoids discussing the dollar shortage due to their allegiance to the Federal Reserve.
- Eurodollar University aims to analyze the real truth about the dollar system's inner workings.
Reserve Managers' Actions
- Foreign reserve managers sell off-the-run US Treasuries to address local dollar shortages.
- This contributes to the treasury sell-off, particularly during market instability, similar to 2008 and 2020.