Everything You Know About the Economy is Wrong with Jeff Snider - WBD528

Jeff Snider is co-host of the Eurodollar University podcast and
Head of Global Research at Atlas Financial Advisors. In this
interview, we discuss the fundamentals of money, how the
Eurodollar controls the global monetary system, and signals of a
deflationary depression.


- - - -


The common narrative about the global economy is bleak. Money
printing by central banks has been out of control. This new money
fed into the economy and resulted in runaway inflation. Years of
interest cuts to stimulate economies means cash is now trash,
whilst economies are stagnating. Debt is unmanageable. The search
for alpha is focused on wealth protection.


But others think this narrative is wrong. Our perceived reality
is a mirage. Central banks are not in control of the levers of
money, they are mere bystanders playing the role of the wizard
behind the curtain. The global monetary system is controlled by
an opaque and unregulated dollar exchange market developed in the
1950s: the Eurodollar system.


The Eurodollar market is sending signals that defy the forecasts
that inflation will endure. The market predicts inflation will be
transitory. In its wake, an aggressive period of deflation will
soon rock the global economic order. Various economists over time
have argued that whilst inflation is damaging, deflation is a
worse evil. It has been blamed for depressions throughout
history.


If these forecasts are right, we could be about to enter a period
of significant economic stress.


Whilst there is consensus on the cause of the current economic
malaise, i.e. profligate behaviours within the financial
industry, opinions on solutions couldn’t be more different. Those
who follow Eurodollar signals believe global financial systems
need more US dollars in the form of debt. A lack of liquidity is
leading to a lack of risk-taking that is hurting the global
economy.


So, as we stand on the brink of widespread societal hardship, we
have a representation of cause and response at odds with
conventional wisdom. With the stakes so high, can we afford to
reject these emergent opinions?