Jeff Snider, CIO of Alhambra Investments and world-renowned (monetary) plumber (@JeffSnider_AIP) and Emil Kalinowski, a fan of the cult New Zealand folk band Flight of the Chonchords, (@EmilKalinowski) discuss the Federal Reserve's announcement of QE Infinity and its relationship to laundromat tokens.
Show Notes
This inaugural episode discusses the goal of building a collaborative, educational community to discuss the creation, destruction and redistribution of modern monetary formats throughout the global economy. A strange kind of money, so unlike what we're used to seeing in our pockets, but a money that is needed to finance activity, trade and progress.
We briefly touched upon the nature of money, the un-centralness of central banks and identified the financial collateral markets - not cash or bank reserves - as the source of the monetary disorder that has spilled out into the broader economy in conjunction with the developing international health emergency. The disorder is in the repurchase agreement market and it lies with collateral, specifically there's not enough of it. Hence, these intermittent liquidity squeezes that have over the past 12 years spread like contagion into the wider economy.
"You can't take out your spine and hope to stand up; that's really what the [repurchase agreement] market is. The way the repo market functions is more collateral-based than it is bank reserves or cash. The lack of collateral is a massive, massive problem."
What is Eurodollar University?
Jeff Snider will guide you through the realm of monetary science. Multiple episodes uploaded each week, discussing big news and key current events, the state of markets and what they are telling you, as well as historical summaries and deep background material so that you can understand what’s really going on in this eurodollar’s world.