Dollar Illiquidity – The Ironic Yet Ignored Spark For The Next Crisis
- Dollar Illiquidity – The Ironic Yet Ignored Spark For The Next Crisis
by Matthew Piepenburg via GoldSwitzerland.com, via https://www.zerohedge.com/
In October of 2019, I began writing/warning of the ignored yet ominous signals coming out of the repo and Eurodollar markets and what the illiquidity (i.e., lack of availability) of U.S. Dollars portended for our markets in the coming years. Well, those years have since arrived.
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Such dollar illiquidity may seem hard to imagine in a world otherwise awash in printed currencies and expanding money supplies. But what I warned then is no different than what is happening now: The Fed is gonna need to print a lot more dollars. In other words, today’s hawks will once again become tomorrow’s doves. Why?
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Because there were and are just not enough liquid dollars today to meet the fantastic array of nuanced and complex dollar demand in both U.S. and global markets.
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read more.
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