Eurodollar University’s Making Sense; Episode 33; Part 2: The Headless Bond Vigilante

———WHERE———

———WHO———

Twitter: https://twitter.com/JeffSnider_AIP
Twitter: https://twitter.com/EmilKalinowski
Art: https://davidparkins.com/

Jeff Snider, Head of Global Investment Research for Alhambra Investments with Emil Kalinowski, redrum redrum REDRUM! Artwork by the modern day Gustave Doré, David Parkins. Podcast intro/outro is “Fugent” by Lupus Nocte at Epidemic Sound.

———WHY———

33.2 Can the Market Absorb any MOAR! US Treasuries?
Will interest rates race higher because there is too much US government debt? Not in a monetary depression when LIQUIDITY trumps SOLVENCY. The latter comes later, the former comes first. And yet economists, financial media, academics and monetary technocrats scare us: ‘There are too many Treasuries!’

[Emil’s Summary] Broadcasting from the kingdom of NYE, I’m Art Bell and this is Coast to Coast AM from the great beyond. Tonight we’ll talk to General Johnson Jameson from his bunker complex beneath the Saskatchewan crust, as to whether Y2K can still happen. Then… ‘Do you want to believe?!’ The government doesn’t want you to. Chris Carter, creator of the X-Files, will tell us exactly which episodes the government didn’t want you to see. Also, Rod Sterling will join me live in studio… well in a manner of speaking. Was the Twilight Zone a documentary that had to be presented to the public as fiction…?

Our time on Earth is indeed, very short. No matter how old or young you are, you are a tiny slice of the cosmos’ plan. You’re here for a very, very short time. We all are. And the big question of course is, what happens after we end this physical life… or it is ended, however you have it. It’s a big question. And October, of course, is a great time to explore that question because one of the main things you look for is some – any evidence of life beyond the physical. The supernatural, the apparition, the unexplained, the Kachina doll that seems to move around the house by itself…

There’s no place more spooky and unexplained than central banking and the monetary order. Let us then enter another dimension. A monetary realm. Let us turn to the wildcard line. Jeff, Emil… can you hear me? This is Art Bell.

———WHEN———

00:05 What was Subsidiary CCC of the Carlyle Group, when did it go bust, and what did it mean?
03:08 In 2006-08 the Carlyle Group was a Washington insider; it employed Randal K. Quarles
04:30 Quarles is now a Fed official and recently gave a speech that got a lot of media publicity
07:48 Quarles gave a speech in 2018 that said, ‘A Ok!’ just as the eurodollar started to bite
10:28 Quarles’ speech in 2020 hinted that the Fed may need to support the Treasury market
13:44 Why do markets stop falling? Why did the March 2020 crisis end in March?
15:02 What is Jeff Snider’s favorite scary book or poem?

———WHAT———

Quarrel With Quarles Over Too Little, Not Too Many: https://bit.ly/35Mshly
The Authority Fallacy, Or The Quarles Quandary: https://bit.ly/3mDro5H
Vice Chair for Supervision Randal K. Quarles Remarks at the Hoover Institution: https://bit.ly/2HSETQf
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7

Eurodollar University’s Making Sense; Episode 33; Part 2: The Headless Bond Vigilante

About the Author: Jeffrey P. Snider

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