Eurodollar University

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?

The Eurodollar futures curve inverted in December 2021 - what has it done since? Also, how to interpret the US Treasury yield curve in "three easy steps!" Lastly, did the Fed cause the price of (Buffalo) (chicken) wings to rise?

PART 1: Inflation @ 7% but... PART 2: Bonds Losing Value - Worst in 2 Years! - but... PART 3: Year 15 of Mass Formation Psychosis (We Explain Why) None of the "Mass Formation Psychosis" interviews with Joe Rogan, Chris Martenson, Robert Malone or Mattias Desmet explained WHY and WHEN. In this episode we do: a 15-year (so far) worldwide economic depression, only the third in the past 150 years.

Alan Greenspan warned in 1996 we would not know if stocks were irrational because we could not know how much money was in the economy. Also, wages are rising - just like they did in the Great Depression? Lastly, the October 2021 Treasury International Capital update.

PART 01: The Fed has to taper faster because consumer prices (i.e. motor fuel, automobiles) rose faster than it expected. It didn't have the moxie to stare down the CPI increase and explain why QE (i.e. 'money') had nothing to do with CPI. Maybe they're not really a central (money) bank.PART 02: The US consumer price index increased by 6.8% year-over-year for the month of November. Inflation, right? Undisputed, incontrovertible evidence of inflation! Step right up and watch the amazing Harry Houdini of Macroeconomics escape this box of inflation and call it "not inflation".PART 03: Headline US wholesale inventories AND sales look incredible—Hallelujah! But if we exclude petroleum products? Inventory growth is outpacing sales growth—Humbug! And if we exclude motor vehicle parts and petroleum? Inventory growth is materially ahead of sales growth—Bah Humbug!----EP. 178 REFERENCES----Taper Rejection: https://bit.ly/3maMRFsThe Higher The CPI, The Less For Inflation: https://bit.ly/3p2XZpnSure, Tomorrow the CPI But Future CPI’s In Today’s Inventory?: https://bit.ly/3258EHCAlhambra Investments Blog: https://bit.ly/2VIC2wWlinRealClear Markets Essays: https://bit.ly/38tL5a7-------SHOW SPONSOR-------Macropiece Theater with Emil Kalinowski (a/k/a Alistair Cooke, a/k/a Alistair Cookie) reading the latest essays, blog posts, speeches and excerpts from economics, geopolitics and more. Interesting people write interesting things, why not listen and hear what they have to say? You could do worse things with your time (i.e. Bloomberg, CNBC, et cetera). Recent readings include thoughts from: Adam Smith, Arthur Schopenhauer, Bank for International Settlements, George Friedman, J.P. Koning, Jean-Paul Sartre, Karl Marx, Liberty Street Economics, Lyn Alden, Maroon Macro, Matt Stoeller, Michael Pettis, Myrmikan, Perry Mehrling, Robert Breedlove, Rohan Grey, Velina Tchakarova and yes, even Jeff Snider.-----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. Illustrations by David Parkins, myth maker. Audio and video editor, The Terence. Logo design by pixelist Lisa Jiang. Master of ceremonies, Emil Kalinowski. Musical intro/outro is "Our Christmas" by The Snowy Hill Singers feat. Sam Shore found at 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.comLisa: http://Lisa-Jiang.com/Lisa: https://twitter.com/@Nylonnerves