49.1 The Eurodollar World Tour: AUS, JPN, USA & GER
What are monetary technocrats / financiers doing to save the world economy? We review: yield curve control in Australia (and Japan!), American regulators tip-toeing away from a once-favored LIBOR alternative, and the ecstatic economic expectations of German financiers.
Jeff Snider, Head of Global Investment Research for Alhambra Investments with Emil Kalinowski. Art by the King of the North, David Parkins.
00:05 Yield curve control has been here for years and may be coming to a central bank near you!
01:02 Why did Dallas Fed President R. Fischer question why the Fed was buying US Treasuries?
03:23 How is WW2-era yield curve control different from modern yield curve control?
05:31 The Reserve Bank of Australia implemented yield curve control in 2020 to popular acclaim.
07:41 But the market, buying bonds, was performing the yield curve control for the RBA!
09:26 Some believe that by controlling the short-term rates, they control long-term as well.
10:53 The US has no YCC. Australia has YCC. Yet the yield curve is behaving the same in both!
12:52 The Bank of Japan has already tried YCC, well before Australia, to immeasurable effect.
14:07 Why is the US Treasury commenting about the secured overnight financing rate now?
18:07 US regulators are now equivocating on the importance of SOFR.
21:07 The Office of the Comptroller of the Currency is scared of market disruption by SOFR
24:38 What do the latest LIBOR rates tell us about the monetary system?
26:02 What do the latest Eurodollar futures (rates) tell us about the monetary system?
29:06 What do the IFO and GfK surveys of German business and consumers tell us?
31:22 What does the ZEW survey of German financiers tell us about economic expectations?
With YCC About To Come Back Up, A Look At It Down Under: https://bit.ly/3dvApMW
Already Tried: https://bit.ly/2ZwP9CP
Insufferable SOFR, Suffering: https://bit.ly/3aAgla2
Episode 34 All About SOFR: https://youtu.be/LH1wDUG-dEI
Reflation Patients, ‘Another’ Six Months: https://bit.ly/3pByiJF
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7