ReSolve Riffs: Jeff Snider & Emil Kalinowski of Eurodollar University on Inflationary Market Signals

This week we had the pleasure of welcoming Jeff Snider (Head of Global Investment Research at Alhambra Investments) and Emil Kalinowski (enterprising investor, author and host of both a talk radio show and a podcast). Together, they co-host Eurodollar University podcast and shed light on the complexities of the global monetary system. Our conversation included:

• Back to basics – how the global currency and monetary systems actually work
• The origins of the Eurodollar system
• Triffin’s Paradox and the breakdown of the Bretton Woods System
• Interest rate targeting as a form of mass psychosis for capital markets
• How banking reserves interact with the Eurodollar system
• Different types of money – commodity-backed, high-powered and credit
• Treasuries as the main form of balance sheet ballast for private investors
• A different take on the Great Financial Crisis – a stampede towards prime collateral at all costs
• Why central banks would compete to buy assets that are already scarce and in high demand
• The true impacts of quantitative easing and why it’s ineffective in reducing interest rates
• The importance of sentiment and why the main role of central banks is theatrical
• Lacking the tools to unclog the system
• How even China got caught in the ‘Eurodollar System Vortex’
• Vast swathes of the real economy have been deprived of credit since 2008
• REPO markets, unwilling primary dealers and backwards elasticity
• Rehypothecation of collateral and other fundamental problems
• Creation and intermediation of money should be done by separate institutions
• And much more