Eurodollar University

If you are in any way interested in precious metals,  you need to see what today's video sponsor, Monetary Metals, is doing with them at the link below: http://www.monetary-metals.com/Snider/South Korea had been on the side of the Fed, sticking with interest rates opting to see about trade war "uncertainty" before doing anything. That lasted all of four weeks. The list of central banks able to sit by and watch CPI has thinned down to just the one Mr. Powell runs. And the update to Q1 GDP in the US holds the key as to why.Eurodollar University's Money & Macro AnalysisBloomberg Bank of Korea Flags More Rate Cuts to Come as Tariffs Hit Growthhttps://www.bloomberg.com/news/articles/2025-05-29/bok-cuts-rate-to-cushion-economy-from-tariffs-political-turmoilCNBC Bank of Korea lowers interest rates for the fourth time, flags more cuts aheadhttps://www.cnbc.com/2025/05/29/south-korea-central-bank-cuts-interest-rates-.htmlChosunBiz Bank of Korea lowers interest rate to 2.50%, signals possibility of further cutshttps://biz.chosun.com/en/en-policy/2025/05/29/E5KPW2LQYFGPRF5EM5G3RUM4XQ/Bloomberg Banxico Sees Growth of 0.1% This Year, Rules Out Recessionhttps://www.bloomberg.com/news/articles/2025-05-29/bank-lending-to-private-credit-funds-swells-145-in-five-yearshttps://www.eurodollar.universityTwitter: https://twitter.com/JeffSnider_EDU

If you are in any way interested in precious metals,  you need to see what today's video sponsor, Monetary Metals, is doing with them at the link below: http://www.monetary-metals.com/Snider/Germany. France. New Zealand. Singapore. ECB. Rising unemployment. Falling employment. Lowering interest rates. Technical recession. Historically low territory up next. There is almost no one left in the official world in the same thinking as the Fed as the world more clearly and completely tilts against "inflation."Eurodollar University's Money & Macro AnalysisWSJ Germany’s Jobless Numbers Tick Higherhttps://www.wsj.com/economy/central-banking/germanys-jobless-numbers-tick-higher-27a99b18Le Monde France's great consumption slumphttps://www.lemonde.fr/en/economy/article/2024/10/10/france-s-great-consumption-slump_6728864_19.htmlBloomberg ECB Faces Greater Risk Inflation Will Undershoot 2%, Simkus Sayshttps://www.bloomberg.com/news/articles/2025-05-26/ecb-faces-greater-risk-inflation-will-undershoot-2-simkus-sayshttps://www.eurodollar.universityTwitter: https://twitter.com/JeffSnider_EDU

The Reserve Bank of Australia had resisted cutting rates, being the last major central bank to do so. This week, RBA not only cut again officials confirmed discussing a fifty. Plus the Swedes, who were supposed to have been done, are back at it again. Race to the bottom heats up again.Eurodollar University's conversation w/Steve Van MetreBloomberg RBA Ready to Respond If Needed to Trade Shock, Hauser Sayshttps://www.bloomberg.com/news/articles/2025-05-22/rba-s-hauser-sees-us-china-trade-dispute-aiding-australian-firmsS&P Global Eurozone PMIs May 2025https://www.pmi.spglobal.com/Public/Home/PressRelease/f4672a7ff89744e096c5e9497d2e5362https://www.eurodollar.universityTwitter: https://twitter.com/JeffSnider_EDU

The discussion dives into why people expect interest rate cuts to stimulate the economy, revealing a shocking truth about the Fed's long-held narratives. It critiques the idea that lower rates guarantee growth, spotlighting historical failures. The talk further unpacks misconceptions about the Fed's actual control over rates, showing how real market behaviors challenge this belief. The cyclical nature of interest rates during economic booms and busts is explored, highlighting the hidden economic issues that low rates often obscure.

Long-term bond yields are on the rise, challenging common beliefs about inflation and fiscal deficits. The complex dynamics of global bond markets and central bank actions are scrutinized for potential risks. Gold emerges as a reliable asset amid economic uncertainty, with discussion on leasing gold for yield. Historical reactions of the Federal Reserve to inflation are linked to current yield uncertainties, emphasizing established economic fundamentals rather than a complete shift in the economic landscape.

The podcast dives into the striking rise of bank lending to offshore entities, raising questions about potential risks during economic downturns. It connects these lending trends to past financial crises, highlighting instability in bank-shadow bank relationships. The discussion delves into the behavior of shadow banks and the unpredictable risks they pose amid evolving credit cycles. With increasing loans to non-bank financial institutions, the fragile economic landscape could face significant challenges in the near future.

This podcast dives into the intriguing views of the Swiss National Bank's chief on inflation risks and the potential for negative prices. J.P. Morgan's Jamie Dimon warns of growing credit risks, emphasizing the need for caution in volatile markets. The discussion highlights gold as a reliable investment amid economic uncertainties and examines the complex interplay between Treasury yields and global market dynamics. Insights on the intricacies of credit fragility reveal key vulnerabilities affecting the broader monetary system.

Moody's recent downgrade of U.S. government debt raises eyebrows, but the hosts argue its impact is overstated amid chronic fiscal irresponsibility. They delve into how soaring federal debt curtails economic freedom and individual liberties. The concept of depression economics is examined through historical examples like the Great Depression, contrasting it with today’s situation. The discussion also highlights the sometimes exaggerated role of government debt in driving private demand and the evolving dynamics of interest rates.

Japan did indeed fall back into recession in the first quarter before the tariff shock even had a chance to hit the economy, and positing a deeper negative GDP print than expected. Like everywhere else, the setback is being led largely by consumers. At the same time, American consumer confidence fell to another shocking low rather than rebound with trade deals and a rebounding stock market. Eurodollar University's conversations w/Steve Van Metrehttps://www.eurodollar.universityTwitter: https://twitter.com/JeffSnider_EDU

The podcast explores the commonly held beliefs about the Great Depression, revealing misconceptions about the 1929 stock market crash. It questions why more recent crashes like those in 1987 and during the dot-com bubble didn’t trigger similar economic disasters. The discussion delves into the role of the Federal Reserve and systemic risks, illustrating how misunderstood banking failures have shaped modern economies. Insights are offered to help listeners better understand the complex world of economics and the lessons learned from historical crises.