Eurodollar University

Jeff Snider & Emil Kalinowski dive into debunking central banking myths, explaining the effects of the past on our current time, and more in this November 2021 episode of Blockworks' "On the Margin" with Mike Ippolito.Jeff Snider & Emil Kalinowski dive into debunking central banking myths, explaining the effects of the past on our current time, and more in this week’s episode of On the Margin.Jeff & Emil are hosts of Eurodollar University, a podcast dedicated to analyzing the 2007 malfunction of the monetary system – and how its continuing disorder – affects finance, politics and society.Jeff & Emil share their thoughts on the myth of central banking, the Fed’s effect on financial markets, why QE is not money printing, the interest rate fallacy & the role of Bitcoin & digital assets.They also covered:The post 2008 global depressionWealth inequalityand more!“On the Margin” is a two-part show. Once a week, Mike interviews industry experts, and then at the end of the week he is joined by a co-host where they break down the top crypto and macro stories. Episodes go live every Wednesday and Saturday morning.Subscribe to “On the Margin” today on Apple or Spotify, or watch episodes on YouTube.https://blockworks.co/podcasts/on-the-margin/https://blockworks.co/https://twitter.com/mikeippolito_

A collateral call in Belgium! Foreign officials are selling US Treasuries! American banks extending less credit to the rest of the world! Japan borrowing more! These, and other, *nerdy* insights for December 2021 from the Treasury International Capital System! Tell all your friends!------EP. 190 TOPICS------00:00 INTRO: TIC data for December was mixed, some positives, mostly negatives00:55 Belgium reported a stunning one-month increase in holdings of US Treasuries.09:11 Foreigners were buying UST overall, though officials were selling US securities.11:21 US banks borrowed significantly less from the rest of the world in December 2021.14:42 Japanese banks borrowed more from the US, a reflation positive!18:10 OUTRO: Markets are sending deflationary signals, which officials will ignore.----EP. 190 REFERENCES----The Global Money Spec-TIC-le In December: https://bit.ly/3sR49cWTreasury International Capital System: https://bit.ly/3H1VWaWAlhambra Investments Blog: https://bit.ly/2VIC2wWlinRealClear Markets Essays: https://bit.ly/38tL5a7-----SEE ALL EPISODES-----Alhambra YouTube: https://bit.ly/2Xp3royEmil YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: https://bit.ly/2V39Xjr---------THE TEAM---------Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is "When To Stop" by Lofive from Epidemic Sound.------FIND THE TEAM-------Jeff: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.com

Consumer inflation expectations peaked in October/November 2021, according to the Federal Reserve Bank of New York's Survey of Consumer Expectations. Market based inflation expectations (Treasury Inflation Protected Securities) also peaked then. What in the CPI is going on here?------EP. 189 TOPICS------00:00 INTRO: The Federal Reserve intends to raise short term interest rates because...???00:53 The Federal Reserve is not a central bank (it doesn't do money supply / demand).03:07 The Fed will hike rates because of tight labor market is tight... 04:52 Can we trust a low unemployment rate? 06:12 How many workers short is the USA of recovery?08:57 The Fed was (very) recently fooled by a (very) low unemployment rate.11:07 The Fed will hike rates because of (rising?) inflation expectations...15:47 The FRBNY asks consumers what their expectations are for inflation.19:00 Market-based inflation expectations peaked in Oct/Nov 2020, like consumer expectations.21:42 A review of FRBNY survey details of consumer inflation expectations for 3 years ahead.24:30 High CPI is unlikely to persist because: logistic resolution and economic weakness.25:21 A review of FRBNY survey details of consumer inflation expectations for 1 years ahead.----EP. 189 REFERENCES----Federal Reserve’s Own Inflation Expectations Surveys More Agree w/Euro$ Futures Inversion Than Rate Hikes: https://bit.ly/3GYESmbSurvey of Consumer Expectations: https://nyfed.org/3GYrIWgWhy Do We Think That Inflation Expectations Matter for Inflation? (And Should We?): https://bit.ly/3gRFyiIAlhambra Investments Blog: https://bit.ly/2VIC2wWlinRealClear Markets Essays: https://bit.ly/38tL5a7-----SEE ALL EPISODES-----Alhambra YouTube: https://bit.ly/2Xp3royEmil YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: https://bit.ly/2V39Xjr---------THE TEAM---------Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is "When To Stop" by Lofive from Epidemic Sound.------FIND THE TEAM-------Jeff: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.com

Caution! Ignore this market warning at your peril. The Eurodollar futures market inversion had deepened and broadened. Eurodollar yields inverted before, for example in 2000, 2005 and 2018. Turned out that Economic Hades was about 18 months away then. What about now?------EP. 188 TOPICS------00:00 INTRO: The Eurodollar futures curve has deepened AND broadened its inversion.00:39 The Eurodollar yield curve is like the US Treasury yield curve but global.02:38 The E$ curve had been getting flatter heading into December 2021, then it inverted.05:13 The E$ curve raised itself higher in January 2022, good news? No, the inversion stayed.08:29 The Federal Reserve does not think much of markets, like eurodollar futures.10:31 Bill Dudley, manager of the Fed's portfolio, blew off the E$ market in 2007.14:15 The E$ curve inversion spread from one point to many contracts in February 2022.19:09 What does it mean when Eurodollar future contracts are grouped by color (packet)?22:14 OUTRO: The Eurodollar market does not believe Fed rate hikes are justified.----EP. 188 REFERENCES----Major Euro$ Curve Developments (also not clickbait): https://bit.ly/3BtPTuyEuro$ Curve Chromodynamics: https://bit.ly/3JF7jaLAlhambra Investments Blog: https://bit.ly/2VIC2wWlinRealClear Markets Essays: https://bit.ly/38tL5a7-----SEE ALL EPISODES-----Alhambra YouTube: https://bit.ly/2Xp3royEmil YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: https://bit.ly/2V39Xjr---------THE TEAM---------Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is "When To Stop" by Lofive from Epidemic Sound.------FIND THE TEAM-------Jeff: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.com

The US government bond market appears to be out of step with CPI, a booming economy and money printing by central banks - what gives? We review two Federal Reserve officials explain that QE is very, really, super powerful (and that's why the bond market signals are haywire).------EP. 187 TOPICS------00:00 INTRO: Federal Reserve officials say QE is very effective.01:18 The US Treasury yield curve have been flattening for many months now.03:49 Bill Dudley wrote a column for Bloomberg on August 9... the anniversary of the end.05:50 Dudley says the economy is booming and bond yields are wrongly way, way way too low.07:49 Dudley explains the low yields as 1) too much global savings.09:40 Dudley explains the low yields as 2) QE being very powerful.10:27 QE is supposed to work via three channels: sentiment, portfolio and bank reserves.14:19 Fed President Esther George said 12-years of QE has lowered 10-year yields by 1.5%.19:31 Most all studies of QE show it to be a meek policy with modest, underwhelming results.21:21 Low bond yields are not a result of meek / modest / underwhelming QE.22:47 OUTRO: Central bankers are desperate to discredit the bond market.----EP. 187 REFERENCES----Bond Yields Can’t Stay This Low Forever: https://bloom.bg/3HLezROAnother Attempt At QE/Inflation: https://bit.ly/3HIQStlEverything Is About Obscuring the True State of the Economy: https://bit.ly/3Ls0ivGAlhambra Investments Blog: https://bit.ly/2VIC2wWlinRealClear Markets Essays: https://bit.ly/38tL5a7-----SEE ALL EPISODES-----YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgBreaker: https://bit.ly/2CpHAFOCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: https://bit.ly/2V39Xjr---------THE TEAM---------Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is CABO by Superintendent McCupcakes from Epidemic Sound.------FIND THE TEAM-------Jeff: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.com

Journalists Kate Duguid and Eric Platt explain that US government bond markets believe the Federal Reserve will be able to tame inflation. Actually bond markets believe the Fed doesn't know what it's doing AND they believe consumer prices increases are not caused by the Fed.------EP. 186 TOPICS------00:00 INTRO: The Financial Times says the Federal Reserve will control inflation; Jeff reacts.01:25 The Federal Reserve will use the labor market data to support rate hikes.  04:24 Are market based inflation expectations for sub-three percent inflation in five years?06:42 Does the bond market believe the Fed will be able to tame inflation?10:41 Real rates are "sharply higher" says the FT; relative to the lowest ever says Jeff.13:24 The FT works backwards to explain the market's behavior to keep the Fed central.14:54 US employment figures for Nov-Dec '21 and Jan '22 received massive seasonal adjustments.18:15 OUTRO: The bond market does not believe too much money has caused price increases.----EP. 186 REFERENCES----Bond market signals room for Fed to raise rates without stalling economy: https://on.ft.com/366WEXRMore Questions Than Clarity On Labor Inflation Pressure As FOMC Seeks Justification For Taper/Rate Hikes: https://bit.ly/3oHiWprIn Advance of Payroll Friday, ADP Payrolls Go Cold: https://bit.ly/3uHxclVPayrolls and Population, What A Mess: https://bit.ly/3GIKlxxAlhambra Investments Blog: https://bit.ly/2VIC2wWlinRealClear Markets Essays: https://bit.ly/38tL5a7-----SEE ALL EPISODES-----YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgBreaker: https://bit.ly/2CpHAFOCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: https://bit.ly/2V39Xjr---------THE TEAM---------Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is CABO by Superintendent McCupcakes from Epidemic Sound.------FIND THE TEAM-------Jeff: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.com

China's 2021 trade surpluses were gigantic, so why isn't the yuan surging too? We review China's 2014-21 trade and currency experience from the perspective of the eurodollar, the international reserve currency that once intermediated trade but now intermediates capital.------EP. 185 TOPICS------00:00 INTRO: Capital flows drive trade, not vice versa. A review of the Chinese trade surplus.03:39 The eurodollar created itself to finance, intermediate trade; to solve Triffin's Paradox.06:12 The eurodollar transitioned from focusing on financing trade to intermediating finance.09:10 The eurodollar created itself offshore (jurisdictions with light-touch regulation).11:17 Is a US trade deficit necessary for the eurodollar network to create US dollars?15:13 China's recent trade surplus has been surging suggesting intense eurodollar inflows.17:12 In 2014-16 China's trade surplus accelerated but the CNY lost value (E$ outflows?).19:30 In 2017-18 China's trade surplus was stable but the CNY surged in value (E$ inflows?).20:58 In 2018-19 China's trade surplus slowed but the CNY collapsed in value (E$ outflows?).22:45 In 2020 China's trade surplus surged and its currency surged in value (E$ inflows?).23:47 In 2021 China's trade surplus surged but its currency slowed in value (E$ outflows?).25:44 OUTRO: If China's eurodollar outflow continues it'll weigh on the global economy.----EP. 185 REFERENCES----China’s Total Dollar Equation: CNY minus Trade Flows equals Some Sense of the Euro$ Problem?: https://bit.ly/33fLy1CAlhambra Investments Blog: https://bit.ly/2VIC2wWlinRealClear Markets Essays: https://bit.ly/38tL5a7-----SEE ALL EPISODES-----Alhambra YouTube: https://bit.ly/2Xp3royEmil YouTube: https://bit.ly/310yisL----HEAR ALL EPISODES-----Vurbl: https://bit.ly/3rq4dPnApple: https://apple.co/3czMcWNDeezer: https://bit.ly/3ndoVPEiHeart: https://ihr.fm/31jq7cITuneIn: http://tun.in/pjT2ZCastro: https://bit.ly/30DMYzaGoogle: https://bit.ly/3e2Z48MReason: https://bit.ly/3lt5NiHSpotify: https://spoti.fi/3arP8mYPandora: https://pdora.co/2GQL3QgBreaker: https://bit.ly/2CpHAFOCastbox: https://bit.ly/3fJR5xQPodbean: https://bit.ly/2QpaDghStitcher: https://bit.ly/2C1M1GBPlayerFM: https://bit.ly/3piLtjVPodchaser: https://bit.ly/3oFCrwNPocketCast: https://pca.st/encarkdtSoundCloud: https://bit.ly/3l0yFfKListenNotes: https://bit.ly/38xY7pbAmazonMusic: https://amzn.to/2UpEk2PPodcastAddict: https://bit.ly/2V39Xjr---------THE TEAM---------Jeff Snider, Head of Global Investment Research for Alhambra Investments. Master of ceremonies, Emil Kalinowski. Illustrations by David Parkins. Audio and video editor, Terence. Episode intro/outro music is CABO by Superintendent McCupcakes from Epidemic Sound.------FIND THE TEAM-------Jeff: https://twitter.com/JeffSnider_AIPJeff: https://alhambrapartners.com/author/jsnider/Emil: https://twitter.com/EmilKalinowskiEmil: https://www.EuroDollarEnterprises.comDavid: https://DavidParkins.com/Terence: https://www.VisualFocusMedia.com

After Today’s FOMC, Yield Curve Is Already As Flat As It Was In Mar ’18 **Without A Single Rate Hike Yet**https://alhambrapartners.com/2022/01/26/after-todays-fomc-yield-curve-is-already-as-flat-as-it-was-in-mar-18-without-a-single-rate-hike-yet/

Oil prices are up and so you would expect that Treasury Inflation Protected Security breakevens (inflation expectations) are ALSO up... but they are not. Like Bitcoin, TIPS are ignoring oil and focusing on something bigger, something worse?

Retail inventory grew at a tremendous pace month-over-month in December 2021 in America. Overall inventory growth was so strong that it contributed overwhelmingly to a strong (?) increase in US GDP for the Q4. But is this actually good news?