Eurodollar University’s Making Sense; Episode 39; Part 3: Spiking The (inflation) Ball At Your Own 30

———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, spiking the ball at the 30-yard line. Artwork by David Parkins. Podcast intro/outro is “Otherworld” by Lama House at Epidemic Sound.

———WHY———

39.3 Polar Opposite Sides of Consumer Credit
In the end, these polar opposites in consumer credit are saying something important about the state of the economy. The same thing. Jobs.

———SPONSOR———

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[Emil’s Summary] Your podcaster has long been impressed by cinema that presents what is outside the human sensory process; art that conceives and presents what we literally cannot perceive. In 2001: A Space Odyssey, Stanley Kubrik shows us what transcendence is, by sending Keir Dullea through an astral rainbowfall. Christopher Nolan’s Interstellar presents Matthew McConaughey in a tesseract, the three-dimensional shadow of four-dimensional space. In Annihilation, Alex Garland samples evolution, by introducing a sentient, prismatic cancer that refracts and reflects the DNA of its surroundings, including that of Natalie Portman.

The audience is placed in an environment that doesn’t reconcile with daily life and leaves them holding on to reality – at least as they understand it – by their fingernails. The eurodollar system is like that. Consider this legal wordfall from the Financial Stability Board: “regulatory arbitrage in the presence of non-harmonised re-hypothecation regimes.”

Or this two-dimensional shadow of extra-dimensional money by Jeff Snider: “Nobody buys securities; they borrow and claim to ‘own’ [them]… [then] the client will agree to allow the dealer to re-pledge… the very security the client is claiming to own… [T]he already re-pledged security… can be re-pledged again… In many if not most cases, there needn’t be the original client [desire] for this chain of re-pledging.”

If you want to know what it’s like to travel through a wormhole for 18 hours in a hundredth of a second like Jodie Foster did in Robert Zemeckis’ Contact then part one of Episode 39 is for you. Parts two and three aren’t the worst things in the world either. Well, this world at least…

———WHEN———

00:05 Should the US government cancel (absorb losses) student loan debt to help the economy?
01:38 Consumer credit has increased but only because the government is handing out student loans
04:06 How does the jobs market in the United States look?
06:08 Why did America’s initial claims for unemployment surge during the week of Dec. 5?’

———WHAT———

Polar Opposite Sides of Consumer Credit End Up in the Same Place – Jobs: https://bit.ly/37RVlJu
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7

Eurodollar University’s Making Sense; Episode 39; Part 3: Spiking The (inflation) Ball At Your Own 30

About the Author: Jeffrey P. Snider

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