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credit-based global reserve currency

Seriously, Good Luck Dethroning the (euro)Dollar

By |2019-11-21T17:56:50-05:00November 21st, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Scarcely a week will go by without some grand prediction of the dollar being dethroned. Set aside how if anything is to be deposed it would have to be the eurodollar, these stories typically follow the same formulaic approach: Country X is moving away from dollar reserves, “diversifying” its holdings because of the geopolitics of Y. Usually, it is the [...]

TIC for September: Not Repo But ‘Further Flaws’

By |2019-11-19T12:15:42-05:00November 19th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The Treasury Department’s TIC for September 2019 finally arrived yesterday. Two months in arrears, it’s often torturous having to wait for the detailed cross border bank figures to show up for particularly noteworthy months. You might remember September for something going on in repo, and TIC is right where we’ve been tracking (trying to) global repo and collateral flows since [...]

Confused By The Slope: All The Answers Were There in 2012 China

By |2016-08-22T17:12:14-04:00August 22nd, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The simple fact of the matter is that 2012 wasn’t supposed to happen. By every orthodox prediction and theory about the set of tools deployed after the Great Recession (after it, the first clue) there was no reason to suspect anything but the usual cyclical occurrences. Sure, the recovery would be weak because the recession large, but retrenchment was never [...]

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