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systemic illiquidity

The Endangered Inflationary Species: Gazelles

By |2021-02-10T19:23:52-05:00February 10th, 2021|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Nevada is, by all accounts and accountants, in rough shape. Very rough shape. An economy overly dependent upon a single industry, tourism, in this case, is a disaster waiting to happen should anything happen to that industry. Pandemic restrictions, for instance.Nevadans cannot afford the government spending they “have” without a gaming industry attracting visitors at full throttle. Desperate, the state’s [...]

Not Do We Need One, But Do We Need A Different One

By |2017-05-23T17:01:37-04:00May 23rd, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

On March 24, 2009, then US President Barack Obama gave a prime time televised press conference whose subject was quite obviously the economy and markets. The US and global economy was at that moment trying to work through the worst conditions since the 1930’s and nobody really had any idea what that would mean. As President, Obama’s main task was [...]

Stuck Between Dollar And De-Dollar

By |2017-05-22T19:47:26-04:00May 22nd, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

As we move past all the calendar effects pressed to the front of each year, some trends are starting to come into view. Not only are there trends but a few round numbers, even. The Chinese monetary system is one that is predicated on “dollars”; not all in dollar-denominated assets, but the type of foreign reserves that are consistent with [...]

Some Surprises Behind China’s ‘Clock’

By |2016-10-24T16:56:28-04:00October 24th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

What do you do if you are China? As that question pertains to the “dollar”, they have been asking themselves as well as the rest of the world since the panic. In various ways, the Chinese have been positioning as if for the end of the dollar system, which has given critics (economists) cause to dismiss it as nothing more [...]

‘Something’ In ‘Dollars’; August

By |2016-10-19T18:08:18-04:00October 19th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

In conventional thinking, China’s problems are China’s problems. As those related to its currency, it is believed a mere matter of either intentional policy (devaluation = export stimulus) or the outflow of “hot money” because of China’s unique circumstances. From this position, one populated by policymakers, what has transpired over the past year plus was all very confusing. It is [...]

More Deutsche Bank Attention Means Even Less ‘Dollars’

By |2016-09-29T17:11:24-04:00September 29th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It seems as if Deutsche Bank is on everyone’s mind, even if nobody knows exactly why. Stocks were down today which is really unremarkable but has become so by the standards of just this year where nothing bad is supposed to be able to intrude. That aside, the news from Germany was quite unnerving. Bloomberg reported early this afternoon that [...]

Searching For 2a7 Comfort In CP And Finding Instead More Confirmation Of The Same ‘Something’

By |2016-09-28T17:10:07-04:00September 28th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

With 2a7 money market reform only a few weeks from its full implementation, there should be by now visible shifts in all the places where such reform will directly impact. Prominent among these money spaces is commercial paper, where the ranks of prime MMF’s that once lent in this market have been reduced in the shift toward government funds. As [...]

A (Significant) Tale Of Two Banks

By |2016-09-27T13:20:32-04:00September 27th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

On August 31, 2008, Germany’s Commerzbank announced that it was purchasing ailing rival Dresdner Bank from Allianz SE. As usual, however, the deal wasn’t described in those terms as nothing ever is so honest in public. Then-Allianz CEO Michael Diekmann said at the time of the announcement: As a strong bank, the new company can safeguard jobs in the long [...]

The Dollar Perspective Matters

By |2016-09-26T18:01:26-04:00September 26th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Perhaps the hardest part of analyzing the eurodollar system is synchronizing all its various dimensions into a common perspective. Coming from the traditional standpoint that views all these various parts as if they are all separate, such a task is often quite difficult. For example, the repo market is almost always described from the cash perspective as if there only [...]

Why It’s Not Really About Deutsche: Overwhelming Evidence of ‘Something’ In ‘Dollars’

By |2016-09-26T16:48:28-04:00September 26th, 2016|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

For quite some time now I have been writing (constantly) about “something” going in “dollar” markets and funding markets all over the world. Chinese markets related to “dollars” have been the most prominent in their disorder, but there is a degree of causation that runs from eurodollars to China and perhaps back again. In other words, Chinese illiquidity is not [...]

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