Eurodollar University Global Currencies Doing Something Very Dangerous
Jan 15, 2026
The Japanese yen's alarming decline is wreaking havoc in the bond market, signaling a shift where currency values dictate interest rates. Central banks seem powerless as similar trends impact other Asian currencies like the South Korean won. Discussions also touch on how the Fed is often portrayed by the media, critiquing its perceived role in maintaining stability. The eurodollar influence and global factors are examined as underlying causes of these currency movements, highlighting a complex economic landscape.
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Markets Don't Buy Central Bank Theater
- Markets largely ignore central bank theatrics and political claims about preserving independence.
- Jeff Snider argues the Fed's legal troubles matter little because markets respond to eurodollar forces, not bureaucratic drama.
Currency Movements Can Drive Rates
- Interest rates are being driven by currency moves rather than the textbook reverse.
- Jeff Snider highlights the yen's plunge forcing the Bank of Japan to lift rates, showing currencies can set rates.
Technocracy's Image Vs. Market Reality
- The media amplifies institutional mystique despite markets behaving differently.
- Jeff Snider says Fed independence is promoted to preserve a technocratic illusion that markets no longer respect.