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Michael Howell on the Recent Rise of Liquidity and the Dollar's Triffin Dilemma

Mining Stock Daily

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The Importance of Liquidity in the Global Economy

You cannot equate the flow of liquidity with interest rates. Liquidity is far more important than interest rates, and I'll come on to explain a little why that is. Collateral is really the mainstay of all forms of credit in the global economy. If you want to understand credit and liquidity, you've got to understand the collateral base. The evidence is there to look at, not only in the last two or three years, but over the last 15 years.

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