Totally, once you finally grasp what he is saying the whole world seems to have a mass delusion! I had to throw out almost everything I thought I'd been learning the last decade...
Always a humbling experience listening to Jeff dispel mainstream monetary narratives -- I'd love to see an Inflation/Deflation debate between him and Russell Napier -- great interview as always Michael!
Such an excellent interview. I am a huge fan of jeff snider and i love how he touched on so many important topics in this interview. Also huge props to the interviewer for facilitating such a wonderful interview.
Asking the right questions is key. I've watched a lot of Jeff's interviews but this is one of the best, well done and thank you! (been waiting for Jeff's rebuttal to Napier)
Please do more with Snider if he will. This is gold because you're getting him to change his phrasing a bit when talking to more of an amateur. Love it.
And YES, Snider spot on. Donkeys buy bitcoin as an inflation hedge, when in reality it's a life boat of a better system - so it's a valuable growing network that you're buying into - not just "digital gold".
You were so patient in this interview, everytime when Jeff shortend you. Thx for this, because it gave this brilliant interview such a flow of great moments, I never heard before. I watched it twice and bookmarked it for the next week. Really good job and it's always a pleasure to listen to Jeff Snider.
Jeff is great in this interview - loaded to the brim with insights. And Mike asking just the right questions. A far cry from the ponderous and confused videos on Alhambra. Good work Mike!!
I have been listening to the inflation/deflation arguments for the past year, and I'd have to say that this is the first time that I felt I was hearing the truth of the thing.
thanks for the interview, as a economics graduate from the 90s I thought I knew something about how the world works. this interview opened my eyes. i have to admit that I was one of those who bought bitcoin for store of value, I see my thesis was wrong. clearly btc is not a store of value, i still hold it because it a great idea. i used to think deflation was good and inflation good but its nuanced. still more to learn and old knowledge to dispel
Love your work guys. Like Jeff talking to his younger self. Love the time Jeff spends talking with some of the younger RUclipsrs out there. Giving back and all that!
Please Help: When we say, "euro-dollar shortage" from the perspective of a bank and money creation, are we basically saying there is less economic activity? Banks create money via credit which mostly is created when an individual or corporation or government decides to fund an new activity that has some risk associated with it. Since banks are unwilling to take on new risky loans, then fewer dollars (Euro-Dollars) are created, right? The Euro-Dollar shortage is basically an issue of less "risk taking" activity in our (USA) economy? And I would assume the same is basically true for Europe too? Since China needs to export to the USA and we need to purchase those exports, then as the USA becomes more impoverished, China slows down.
Amazing real live conversations. You can't imagine the damage slow growth is doing to Brazil and to a while generations of young and working class. The ones doing ok are the ones that could retire until 2017 and the government elite class. But the rich class, they are swimming in money.
Really interesting interview! I found Jeff and Emil's podcast a while and have been absorbing their content ever since. I couldn't agree more that this is the way the world works: 52:49
Dear Blockworks Macro Team, if you want to talk/know more about the actual idea of quantitative easing talk to Prof. Richard Werner. He is the inventor of QE, but his idea was very different to the QE of today. Would like this interview. ☺️
20:46 a domestic currency needs to protect the time and energy of its citizens. What happens when govt leaders redirect and dilute that (productive) time and energy? Well put into words!
Very insightful. Snider's points about a dollar shortage support the theory that there isn't any regulation of bitcoin/crypto in order to not only soak up volatility but more importantly create additional liquidity. Maybe things won't change much at all, accept for an increasingly more efficient and confident assortment of cryptocurrencies to support a reserve currency on the side. And then, perhaps, in any catastrophic scenario, they could take over completely.
Well said. This explains a point Ive tried to make a number of times, that banks and financial elite literally need crypto. Ive always suggested that before govs could transition to a CBDC they needed a cash equivalent to conduct off-books shenanigans with, and currently that looks like Bitcoin and overall the most liquid crypto. Your point is much less cynical too lol
Two smart Gentlemen, speaking intelligently, with the intent - I believe - of Understanding and Truth and Knowledge. Well worth taking a short break from watching bootleg live performances of Tool.
@@BlockworksHQ And let me rant further, Thank You. 1. Jeff Snider is so smart, it pisses me off a little. At night, when I am alone and self critical, I compare myself to Jeff Snider and cry. Seriously, tho: Mr. Snider is wicked smart, and I also very much admire his HONEST observation (at about 33:30 in the video) of THAT SIMMERING SENTIMENT, a symptom of which how all post-Boomer generations have perhaps suffered to some degree as a result of 'Boomer Crowding' (trademark 2021 Josh Brooks, that is a legal contract) in jobs, housing, control of government, et cetera. 2. The Kid (as in very intelligent Person younger than Me, intended in the positive connotation) on the left of the screen is SO FLIPPIN SMART FOR HIS AGE (here I am, a 46 year old X'er, having to watch this shit two or three times at 0.75x, just to START to Understand). The Blockworks Smart Gentleman also speaks in a way as to signal interest in exploring the MULTIPLE TRUTHS - in a Macro-Crypto context - of important ideals, concepts, and / or issues salient such as fairness and equality, the levelness of the playing field, the occurrence and transparency of fiscal and / or monetary government f**kery, and healthy Capitalistic competition that balances Labor's Needs with Capital's Greed (another trademark 2021 Josh Brooks).
Important to mention the take over of and ever increasing funding of college costs by the federal government encouraged the would be students to take on loans that drove the costs of tuitions and dorm living up to impossible ranges. Previously, students worked and attended college as they could pay their way, graduating with little or no debt.
Really appreciate some deep macro content from you all. I'm sick of Bitcoin/Crypto news rn for some reason. I guess cause I'm starting to see how ideological it can get.
This is a really good contrary to the arguments you hear in favor of bitcoin. I would really love to hear Mr. Snider argue vs someone like Matthew Kratter
Jeff Snider, Prof. Richard Werner and Steve Keen have been instrumental in correcting the wrong knowledge (dogma) I gained through studying Economics to a Master Degree level
Would love someone to go through some major financial ( pre-GFC and then post-GFC ) transaction ( funding ? ) between one or a group of these major banks and a corporation needing the "money" and then settling their debt with the bank, or paying "interest" on it through repo or whatever. Is this making sense ? Thanks
I believe Russell changed his view due to Governments providing Commercial Banks guarantees to lend; thus ultimately igniting inflation. Jeff’s views on that would be great .
Shoes full of cash? Can I think of bank reserves as shoes full of cash that only can be moved from bank to bank? Or can the shoes have bonds and cash? By thinking of reserves as shoes, just trying to assign a picture to the situation.
Great vid, can you please ask this man to explain people more about what is his opinion about SOFR , how it works in his opinion and soon CME wiring their futures and other things to this benchmark once eurodollars disappear in couple of years?
Why is this concept of "elasticity" so important, I do not get this? When the supply is not elastic but static, the value of each unit will just change and thus solving the market imbalance.
This is issue is the one major difference between Austrian/Neoclassical monetary theory that I have never been able to decipher. I would love to hear a neoclassicist address this.
I think it comes down to lending and therefore interest rates as Jeff emphasises. Nobody is putting their Dollars to work in the real economy, because of risk relative to return, or the interest rate. Perhaps because of the fear of tech to come along and erase your industry overnight, or maybe because the pool of entrepreneurial endeavors is too small, or maybe even too big so only the top projects become oversubscribed. Maybe the roads between capital and deployment are too inefficient because of taxes, regulations, licensing, and liabilities, or even simply infrastructurally. In the latter case crypto is at a massive advantage since any good idea can become funded with comparatively zero friction. Maybe at some point in the future crypto will find either the right protocol, or enough faith that it can start to be used to fund not just financial and tech innovations, but even a strictly meat space endeavor such as paving roads or taking out the trash... All that rant just to inform everyone Im no authority on any of these topics except for maybe decentralized finance, so I may not have even answered the question as it was meant to be understood lol. Good luck sirs.
So, when a bank lends in the currency of the nation it is chartered in, it lends creates units of that currency. Because of the use of US dollars as a global currency, banks in other countries can also create US currency. These non-US banks creating US currency creates an arena of unregulated cowboy finance. Is that the core message here?
The term 'Anti-Deflationary' explains the fed/govts motivation. They know they can't let it deflate so they reflate to equalize the deflation. They benefit from people's fear of inflation due to the Deflationary backdrop.
Voluntarily fighting in Iraq and Afghanistan, when the "Great Generation" were conscripted and Boomers were notorious for draft dodging, including the former President Trump.
So a dollar deposited overseas is a Eurodollar, and the general term for a currency deposited overseas is Eurocurrency. I have to ask...is a Euro deposited outside the Eurozone called a Euroeuro? Euro^2? Help me guys, I can't sleep 🥺
But the government has now the money that the banks created and traded for the Treasury-Bond. And with that the government spends it on infrastructure or stimmy. So there is some kind of "money printing". Isnt there?
If a commercial bank exchanges a treasury bill/bond for bank reserves from the Federal Reserve via Quantitative Easing policies, doesn't that now give the commercial bank the ability to lend more on the new reserves? Jeff Snider is saying Quantitative Easing is not "the Fed Printing money" but "creating bank reserves". But isn't the effect that the commercial banks can then print money 10x with the new reserves? QE may not be directly printing money but it is giving the commercial banks the reserves to BE ABLE to print the money. So the effect is the same. QE has the effect of printing money... It seems to be Jeff Snider's point is a moot one. QE has the effect of increasing the money supply indirectly through asset-swaps with commercial banks giving the commercial banks increased reserves to go out and "print money" and lend it out to investors..
@@NikolaiRay I would politely disagree that only the treasury prints money. Commercial banks obtain bank charters which gives them the license to create money out of thin air. Commercial banks in the US must keep 10% reserves and can lend 10 times their reserves. They don't print money in paper, but they expand the money supply everytime they issue a new loan, since they are not lending out from reserves, rather they are lending out of inflation which is an expansion of the money supply. So they "print" money by issuing credit to borrowers checking account, as an example.. commercial banks have the ability to create money and they do all the time. they borrow at 0.01% or whatever measly amount to savings account holders and lend at 3-12% on mortgage loans, business loans, personal loans, etc... so they are making easily a 100-1,000% return on their investments... I have listened to hours and hours of Jeff trying to get his point which just seems to be clarifying a technicality, that QE, is not printing money. Fine, but he says it is exchanging a marketable security like a bond for a less fungible security which is a federal reserve asset, but nevertheless none of that matters because a commercial bank doesnt lend from reserves, it lends from credit/inflation/increasing money supply/money out of thin air... He can clarify the technicality of quantitative easing but the effect is inflationary...
Another thing to ask him is if interest rates fall because there’s a lack of dollars so banks and others bid up bond prices why then is the federal reserve buying like 120 billion in government bonds? Is that because they view it’s good for the nation and they don’t care about the world dollar system? If the fed takes out a trillion a year in government bonds that could have gone offshore that sounds like it could have an affect.
Well Bitcoin and gold are limited or just can’t be created on a computer infinitely. I think lots of people want that to back the system because they know the dollar as fiat just inflates away. I read I think the dollar has lost 95% of its value the last 75 years or something. That’s crazy. Like you showed wtf happened in 1971 shows wages stagnating with asset prices skyrocketing. Sound money would probably help workers more.
I always wondered why Jeff had empty diploma-frames in the background, but I think you can go a bit meta on it Perhaps he's saying that you don't need all these ivy-league diploma's to understand the monetary system....if anything; it's because of those people that we're in this mess
The problem is since 1980's all money has gone into creating asset bubbles and not into real economy. People have been making their money by betting on these asset bubbles instead of building things. Our real economy of manufacturing ect was shipped overseas and the GOVT who allowed this did absolutely nothing to replace these jobs. So, we got financial planners and house flippers and all that goes into that built on a ponzi scheme of private debt. People now are in debt up to their eyeballs and again GOVT does nothing to alleviate this debt, instead it makes it worse. Obamacare corporatized medicine and drove up health cost, expansion of credit for student loans drove up healthcare costs. THIS IS ALL INTENTIONAL. Biden, who ran on forgiving student debt -- once he gets in - abandons it. Must look at big picture -- these has been a globalist plan since after WW2 -- got to put the pieces together. All right there for anyone to see, just use common sense.
"Betting against gold is the same as betting on governments. He who bets on governments and government money, bets against 6,000 years of recorded human history" - Charles de Gaulle
"The fact that many countries, accept as a principle, dollars being as good as gold, for the payment of the differences existing to their advantage in the American balance of trade," said De Gaulle, "this fact, leads Americans, to get into debt and to get into debt for free at the expense of other countries. Because what the US owes them it is paid, at least in part, with dollars the are the only one allowed to emit. Considering the serious consequences a crisis would have in such a domain, we think that measures must be taken on time to avoid it. We consider necessary that international trade be established as it was the case before the great misfortunes of the world, on a indisputable monetary base, and one that does not bear the mark of any particular country. Which base ? In truth no one see how one could really have any standard criterion other than GOLD!"
Fiat Monetary System is not the problem. A gold backed monetary system is a poor choice to back up currencies, because the scarcity of gold limits the quantity of money that can be created. There simply isn't enough gold in the World to represent the value of the economic output of the World. So the problem isn't a fiat monetary system. In fact there is no better monetary system than a monetary system backed by the FUTURE LABOR AND INGENUITY OF THE POPULOUS. The problem with the current International Monetary System is that it is UNFAIR, giving The US Banks EXORBITANT PRIVILEGE to essentially create money out of nothing without ever creating any value. The current International Monetary System is a kleptocratic system.
He does fantastic work. But I don't see anybody else doing this, and we need more people with differing viewpoints....It's not his fault, butbut the invetment community needs diversity of views....
How does Bitcoin help a dollar shortage, you have to buy it with dollars or another currency. Actually how do you even have a shortage? Then value of $ rises, prices fall in terms of $. Mr Snider has said it is to pay loans which are fixed, but isn’t that just a debt problem?
@@user-zb6lg1xj3k Sure would be nice if I could borrow for a car I can’t afford then blame the monetary system for my lack of dollars. I thought banks used futures to hedge currency risk. It’s not like they are blindsided by this, it has been going on for a long time.
How will bitcoin or any other closed coin help the situation if there are "whales" that hold so much it becomes a bank- ish situation again . Then the winners for elasticity will be an unlimited amount coin with a transparent ledger . For high growth? Of course you can leverage but then you end up with similar problems right? So has bitcoin been basterdized already ?
So it seems that the world just needs to swing back and forth between the eurodollar system and MMT, depending on where we're at with dollar availability.
While corporations (including but not limited to banks) can print money ad infinitum there will always be income inequality no matter how much wages grow
You should ask him. If there was a dollar shortage was it really a shortage or did the banks having trillions of derivatives just speculate and got to big in positions?
All about confidence. The greatest threat to the Federal Reserve Bank Reserve is downfall of confidence in the military of the United States. War, not our word, is our “bond”.
Jeff, I'm watching the mass chaos in Japan right now. Kids rioting in the streets,, living in basements and feeling hopeless because, you know, there's been no growth for there for over 30 years.
You should ask him what he’d prescribe to fix the dollar shortage system. Would MMT and everyone including foreign banks having accounts at the fed help?
Hoping George watches this…the Gammon/Snider bro crush leaves many of these very important things unsaid. I get it…I would leave the boomer tantrum out of my pillow talk with Jeff to George, some relationships are worth it.
![Why Zoltan Pozsar's Bretton Woods 3 is SO WRONG [Eurodollar University, Ep. 217]](http://i.ytimg.com/vi/ChSlwyl4vQA/mqdefault.jpg)
Brilliant interview! I jump to it whenever I see Jeff Snider's name. He's the reason I'm finally starting to wrap my brain around macro.
We love him too! Thanks for watching.
Totally agree, same here :)
Same here 👍
Totally, once you finally grasp what he is saying the whole world seems to have a mass delusion! I had to throw out almost everything I thought I'd been learning the last decade...
It is just so satisfying.
Jeff Snider is the most down-to-earth, friendly genius, I can imagine.
Jeff Snyder is a generational talent that is way underrated. The interviewer is also awesome…great content.
Always a humbling experience listening to Jeff dispel mainstream monetary narratives -- I'd love to see an Inflation/Deflation debate between him and Russell Napier -- great interview as always Michael!
What would they be debating about?
Jeff is an absolute professional, listening mostly to him only.
1 year I listen to Jeff, starting to understand what he is saying ! I feel happy
Holy cow! Jeff Snider on Blockworks!
More to come!
Such an excellent interview. I am a huge fan of jeff snider and i love how he touched on so many important topics in this interview. Also huge props to the interviewer for facilitating such a wonderful interview.
Blockworks has a good head on their shoulders. Let the mass education of noobs begin!!
Asking the right questions is key. I've watched a lot of Jeff's interviews but this is one of the best, well done and thank you! (been waiting for Jeff's rebuttal to Napier)
Please do more with Snider if he will. This is gold because you're getting him to change his phrasing a bit when talking to more of an amateur. Love it.
And YES, Snider spot on. Donkeys buy bitcoin as an inflation hedge, when in reality it's a life boat of a better system - so it's a valuable growing network that you're buying into - not just "digital gold".
Very enjoyable and interesting conversation. I am a huge Jeff Snider fan. Smart, personable, good communicator.
You were so patient in this interview, everytime when Jeff shortend you. Thx for this, because it gave this brilliant interview such a flow of great moments, I never heard before. I watched it twice and bookmarked it for the next week. Really good job and it's always a pleasure to listen to Jeff Snider.
Fantastic interview, Jeff is always incredibly insightful.
Jeff is great in this interview - loaded to the brim with insights. And Mike asking just the right questions. A far cry from the ponderous and confused videos on Alhambra. Good work Mike!!
I have been listening to the inflation/deflation arguments for the past year, and I'd have to say that this is the first time that I felt I was hearing the truth of the thing.
thanks for the interview, as a economics graduate from the 90s I thought I knew something about how the world works. this interview opened my eyes. i have to admit that I was one of those who bought bitcoin for store of value, I see my thesis was wrong. clearly btc is not a store of value, i still hold it because it a great idea. i used to think deflation was good and inflation good but its nuanced. still more to learn and old knowledge to dispel
Awesome interview. Looking forward to Blockworks digesting this information and giving us their opinion on it. I'm a big follower of Jeff and Emil.
More to come! Glad you enjoyed.
Emil is a genius
Thank you for arranging this interview. Very enlightening. Jeff is the man!
This was an incredible interview! Thank you both.
Huge respect to the interviewer. What a great interview.
I wld say this again. It is criminal such great content is free.
This is a brilliant interview.
Jeff Snider, the man, the myth, the legend!
Love your work guys. Like Jeff talking to his younger self. Love the time Jeff spends talking with some of the younger RUclipsrs out there. Giving back and all that!
Stay on the margin….. it’s where concepts meet with reality. Two thumbs up!!
Most intelligent warm guy I have heard talk about finance truly a magic interview
Thank you so much 😊 👍❤️
Probably the best deep dive macro/crypto conversation I have heard in a while. Thanks guys.
Please continue with similar guests and content.
Jeff Snider brilliant Interview Thank you for Video
Great interview. This gentleman has excellent perspective.
Always good to hear the insights of Jeff Snider, the Wolfman of Wall Street.
Please Help: When we say, "euro-dollar shortage" from the perspective of a bank and money creation, are we basically saying there is less economic activity? Banks create money via credit which mostly is created when an individual or corporation or government decides to fund an new activity that has some risk associated with it. Since banks are unwilling to take on new risky loans, then fewer dollars (Euro-Dollars) are created, right? The Euro-Dollar shortage is basically an issue of less "risk taking" activity in our (USA) economy? And I would assume the same is basically true for Europe too? Since China needs to export to the USA and we need to purchase those exports, then as the USA becomes more impoverished, China slows down.
Amazing real live conversations. You can't imagine the damage slow growth is doing to Brazil and to a while generations of young and working class. The ones doing ok are the ones that could retire until 2017 and the government elite class. But the rich class, they are swimming in money.
Just outstanding. Thank you.
Really interesting interview! I found Jeff and Emil's podcast a while and have been absorbing their content ever since.
I couldn't agree more that this is the way the world works: 52:49
Brilliant. Thank you guys.
Dear Blockworks Macro Team, if you want to talk/know more about the actual idea of quantitative easing talk to Prof. Richard Werner. He is the inventor of QE, but his idea was very different to the QE of today. Would like this interview. ☺️
Super interview here.. great questions and well timed 👍
20:46 a domestic currency needs to protect the time and energy of its citizens. What happens when govt leaders redirect and dilute that (productive) time and energy?
Well put into words!
Very insightful. Snider's points about a dollar shortage support the theory that there isn't any regulation of bitcoin/crypto in order to not only soak up volatility but more importantly create additional liquidity. Maybe things won't change much at all, accept for an increasingly more efficient and confident assortment of cryptocurrencies to support a reserve currency on the side. And then, perhaps, in any catastrophic scenario, they could take over completely.
Well said. This explains a point Ive tried to make a number of times, that banks and financial elite literally need crypto. Ive always suggested that before govs could transition to a CBDC they needed a cash equivalent to conduct off-books shenanigans with, and currently that looks like Bitcoin and overall the most liquid crypto.
Your point is much less cynical too lol
Two smart Gentlemen, speaking intelligently, with the intent - I believe - of Understanding and Truth and Knowledge. Well worth taking a short break from watching bootleg live performances of Tool.
Thanks for watching! More content coming your way!
@@BlockworksHQ And let me rant further, Thank You. 1. Jeff Snider is so smart, it pisses me off a little. At night, when I am alone and self critical, I compare myself to Jeff Snider and cry. Seriously, tho: Mr. Snider is wicked smart, and I also very much admire his HONEST observation (at about 33:30 in the video) of THAT SIMMERING SENTIMENT, a symptom of which how all post-Boomer generations have perhaps suffered to some degree as a result of 'Boomer Crowding' (trademark 2021 Josh Brooks, that is a legal contract) in jobs, housing, control of government, et cetera. 2. The Kid (as in very intelligent Person younger than Me, intended in the positive connotation) on the left of the screen is SO FLIPPIN SMART FOR HIS AGE (here I am, a 46 year old X'er, having to watch this shit two or three times at 0.75x, just to START to Understand). The Blockworks Smart Gentleman also speaks in a way as to signal interest in exploring the MULTIPLE TRUTHS - in a Macro-Crypto context - of important ideals, concepts, and / or issues salient such as fairness and equality, the levelness of the playing field, the occurrence and transparency of fiscal and / or monetary government f**kery, and healthy Capitalistic competition that balances Labor's Needs with Capital's Greed (another trademark 2021 Josh Brooks).
Do we ever get an extended conversation on you know, what to do about it?
Fascinating discussion 👍
Jeff is the 🧨…👍👍
Good to see some crypto advocates navigating the complex understanding of "money printing" with adult conversations!
Jeff is fantastic!
Important to mention the take over of and ever increasing funding of college costs by the federal government encouraged the would be students to take on loans that drove the costs of tuitions and dorm living up to impossible ranges. Previously, students worked and attended college as they could pay their way, graduating with little or no debt.
Excellent analysis
Completely unrelated, but I'm glad Jeff's keeping the beard. The mullet's a nice touch too!
I think the kids call it “the flow”
@@trayrene he has the makings of a fine beer leaguer
haha the beard rocks, keep it !!! :) i just saw his promo pic on Alhambra, it looks like a totally different person , great info
couldn't believe my eyes when I saw this interview in my recommended
Thanks for watching!
Helical, Jeff! Time only moves in one direction ;) Time durations introduce uncertainty.
Really appreciate some deep macro content from you all. I'm sick of Bitcoin/Crypto news rn for some reason. I guess cause I'm starting to see how ideological it can get.
@Jack Freckle probably right. I opened up a short a weak ago so that's another strong indicator the price will probably skyrocket soon.
This is a really good contrary to the arguments you hear in favor of bitcoin. I would really love to hear Mr. Snider argue vs someone like Matthew Kratter
Jeffs a Boss.
One thing I don’t understand is: if there is a global shortage of dollars and collateral, then why are asset prices astronomically high right now?
Exactly. The reason why is because Jeff is totally wrong
10:00 by this you only see it when the collateral comes into play
Jeff Snider, Prof. Richard Werner and Steve Keen have been instrumental in correcting the wrong knowledge (dogma) I gained through studying Economics to a Master Degree level
holy f im a huge fan of jeff snider before crypto. This is the first time I really hear him speak about crypto near the end. Wow.
That was outstanding!
There's no sound on this video
Would love someone to go through some major financial ( pre-GFC and then post-GFC ) transaction ( funding ? ) between one or a group of these major banks and a corporation needing the "money" and then settling their debt with the bank, or paying "interest" on it through repo or whatever. Is this making sense ? Thanks
Really good interview. SO we should invest for deflation?
I believe Russell changed his view due to Governments providing Commercial Banks guarantees to lend; thus ultimately igniting inflation.
Jeff’s views on that would be great .
Shoes full of cash? Can I think of bank reserves as shoes full of cash that only can be moved from bank to bank? Or can the shoes have bonds and cash? By thinking of reserves as shoes, just trying to assign a picture to the situation.
Great vid, can you please ask this man to explain people more about what is his opinion about SOFR , how it works in his opinion and soon CME wiring their futures and other things to this benchmark once eurodollars disappear in couple of years?
Snider for king 2024
wow really good interview
Why is this concept of "elasticity" so important, I do not get this? When the supply is not elastic but static, the value of each unit will just change and thus solving the market imbalance.
This is issue is the one major difference between Austrian/Neoclassical monetary theory that I have never been able to decipher. I would love to hear a neoclassicist address this.
Money is a medium of exchange within commerce. No commerce, no jobs, no economy etc
I think it comes down to lending and therefore interest rates as Jeff emphasises. Nobody is putting their Dollars to work in the real economy, because of risk relative to return, or the interest rate. Perhaps because of the fear of tech to come along and erase your industry overnight, or maybe because the pool of entrepreneurial endeavors is too small, or maybe even too big so only the top projects become oversubscribed. Maybe the roads between capital and deployment are too inefficient because of taxes, regulations, licensing, and liabilities, or even simply infrastructurally.
In the latter case crypto is at a massive advantage since any good idea can become funded with comparatively zero friction. Maybe at some point in the future crypto will find either the right protocol, or enough faith that it can start to be used to fund not just financial and tech innovations, but even a strictly meat space endeavor such as paving roads or taking out the trash...
All that rant just to inform everyone Im no authority on any of these topics except for maybe decentralized finance, so I may not have even answered the question as it was meant to be understood lol.
Good luck sirs.
So, when a bank lends in the currency of the nation it is chartered in, it lends creates units of that currency.
Because of the use of US dollars as a global currency, banks in other countries can also create US currency. These non-US banks creating US currency creates an arena of unregulated cowboy finance.
Is that the core message here?
Great work
Jeff, what a legend, he explains the monetary system like no one else and gives a lot of his time to explaining it for free.
Despair and Destitution
The term 'Anti-Deflationary' explains the fed/govts motivation. They know they can't let it deflate so they reflate to equalize the deflation. They benefit from people's fear of inflation due to the Deflationary backdrop.
Highlight @37:20 pay close attention
What would you say this younger generation has contributed to the country equivalent to the men of WWII and WWI ?
Voluntarily fighting in Iraq and Afghanistan, when the "Great Generation" were conscripted and Boomers were notorious for draft dodging, including the former President Trump.
So a dollar deposited overseas is a Eurodollar, and the general term for a currency deposited overseas is Eurocurrency. I have to ask...is a Euro deposited outside the Eurozone called a Euroeuro? Euro^2? Help me guys, I can't sleep 🥺
You are correct Andrew. A euroeuro, as crazy as it sounds, is a real thing.
But the government has now the money that the banks created and traded for the Treasury-Bond. And with that the government spends it on infrastructure or stimmy. So there is some kind of "money printing". Isnt there?
BTC is digital gold
And its scarcity is one of the characteristic that makes it digital gold
It is not designed to be currency
If a commercial bank exchanges a treasury bill/bond for bank reserves from the Federal Reserve via Quantitative Easing policies, doesn't that now give the commercial bank the ability to lend more on the new reserves?
Jeff Snider is saying Quantitative Easing is not "the Fed Printing money" but "creating bank reserves". But isn't the effect that the commercial banks can then print money 10x with the new reserves? QE may not be directly printing money but it is giving the commercial banks the reserves to BE ABLE to print the money. So the effect is the same. QE has the effect of printing money... It seems to be Jeff Snider's point is a moot one. QE has the effect of increasing the money supply indirectly through asset-swaps with commercial banks giving the commercial banks increased reserves to go out and "print money" and lend it out to investors..
@@NikolaiRay I would politely disagree that only the treasury prints money. Commercial banks obtain bank charters which gives them the license to create money out of thin air. Commercial banks in the US must keep 10% reserves and can lend 10 times their reserves. They don't print money in paper, but they expand the money supply everytime they issue a new loan, since they are not lending out from reserves, rather they are lending out of inflation which is an expansion of the money supply. So they "print" money by issuing credit to borrowers checking account, as an example.. commercial banks have the ability to create money and they do all the time. they borrow at 0.01% or whatever measly amount to savings account holders and lend at 3-12% on mortgage loans, business loans, personal loans, etc... so they are making easily a 100-1,000% return on their investments... I have listened to hours and hours of Jeff trying to get his point which just seems to be clarifying a technicality, that QE, is not printing money. Fine, but he says it is exchanging a marketable security like a bond for a less fungible security which is a federal reserve asset, but nevertheless none of that matters because a commercial bank doesnt lend from reserves, it lends from credit/inflation/increasing money supply/money out of thin air... He can clarify the technicality of quantitative easing but the effect is inflationary...
Another thing to ask him is if interest rates fall because there’s a lack of dollars so banks and others bid up bond prices why then is the federal reserve buying like 120 billion in government bonds? Is that because they view it’s good for the nation and they don’t care about the world dollar system? If the fed takes out a trillion a year in government bonds that could have gone offshore that sounds like it could have an affect.
Well Bitcoin and gold are limited or just can’t be created on a computer infinitely. I think lots of people want that to back the system because they know the dollar as fiat just inflates away. I read I think the dollar has lost 95% of its value the last 75 years or something. That’s crazy. Like you showed wtf happened in 1971 shows wages stagnating with asset prices skyrocketing. Sound money would probably help workers more.
Excellent
I always wondered why Jeff had empty diploma-frames in the background, but I think you can go a bit meta on it
Perhaps he's saying that you don't need all these ivy-league diploma's to understand the monetary system....if anything; it's because of those people that we're in this mess
Look very carefully. They are not empty. The documents in them are extremely faded, but there is something in each frame.
The problem is since 1980's all money has gone into creating asset bubbles and not into real economy. People have been making their money by betting on these asset bubbles instead of building things. Our real economy of manufacturing ect was shipped overseas and the GOVT who allowed this did absolutely nothing to replace these jobs. So, we got financial planners and house flippers and all that goes into that built on a ponzi scheme of private debt. People now are in debt up to their eyeballs and again GOVT does nothing to alleviate this debt, instead it makes it worse. Obamacare corporatized medicine and drove up health cost, expansion of credit for student loans drove up healthcare costs. THIS IS ALL INTENTIONAL. Biden, who ran on forgiving student debt -- once he gets in - abandons it. Must look at big picture -- these has been a globalist plan since after WW2 -- got to put the pieces together. All right there for anyone to see, just use common sense.
"Betting against gold is the same as betting on governments. He who bets on governments and government money, bets against 6,000 years of recorded human history"
- Charles de Gaulle
"The fact that many countries, accept as a principle, dollars being as good as gold, for the payment of the differences existing to their advantage in the American balance of trade," said De Gaulle, "this fact, leads Americans, to get into debt and to get into debt for free at the expense of other countries. Because what the US owes them it is paid, at least in part, with dollars the are the only one allowed to emit. Considering the serious consequences a crisis would have in such a domain, we think that measures must be taken on time to avoid it. We consider necessary that international trade be established as it was the case before the great misfortunes of the world, on a indisputable monetary base, and one that does not bear the mark of any particular country. Which base ? In truth no one see how one could really have any standard criterion other than GOLD!"
So what is the keeping the US government spending in check? The debt ceiling? 😆
Fiat Monetary System is not the problem. A gold backed monetary system is a poor choice to back up currencies, because the scarcity of gold limits the quantity of money that can be created. There simply isn't enough gold in the World to represent the value of the economic output of the World. So the problem isn't a fiat monetary system. In fact there is no better monetary system than a monetary system backed by the FUTURE LABOR AND INGENUITY OF THE POPULOUS. The problem with the current International Monetary System is that it is UNFAIR, giving The US Banks EXORBITANT PRIVILEGE to essentially create money out of nothing without ever creating any value. The current International Monetary System is a kleptocratic system.
Brrrrilliant
He does fantastic work. But I don't see anybody else doing this, and we need more people with differing viewpoints....It's not his fault, butbut the invetment community needs diversity of views....
How does Bitcoin help a dollar shortage, you have to buy it with dollars or another currency. Actually how do you even have a shortage? Then value of $ rises, prices fall in terms of $. Mr Snider has said it is to pay loans which are fixed, but isn’t that just a debt problem?
It is a debt problem, and there’s a shortage of dollars to pay that existing debt
@@user-zb6lg1xj3k Sure would be nice if I could borrow for a car I can’t afford then blame the monetary system for my lack of dollars. I thought banks used futures to hedge currency risk. It’s not like they are blindsided by this, it has been going on for a long time.
How's that matrix port APY holding up? Lol
How will bitcoin or any other closed coin help the situation if there are "whales" that hold so much it becomes a bank- ish situation again . Then the winners for elasticity will be an unlimited amount coin with a transparent ledger . For high growth? Of course you can leverage but then you end up with similar problems right? So has bitcoin been basterdized already ?
So it seems that the world just needs to swing back and forth between the eurodollar system and MMT, depending on where we're at with dollar availability.
While corporations (including but not limited to banks) can print money ad infinitum there will always be income inequality no matter how much wages grow
You punted on BTC. The NAV of bitcoin has to be a negative number.
You should ask him. If there was a dollar shortage was it really a shortage or did the banks having trillions of derivatives just speculate and got to big in positions?
All about confidence. The greatest threat to the Federal Reserve Bank Reserve is downfall of confidence in the military of the United States. War, not our word, is our “bond”.
There is two megabrains in this space, J.Snider and Steven van Meter.
Jeff, I'm watching the mass chaos in Japan right now. Kids rioting in the streets,, living in basements and feeling hopeless because, you know, there's been no growth for there for over 30 years.
@@joeyjoejoejrshabadu LOL. It's called sarcasm, bro. Peace.
you lost credibility with the advertisement
You should ask him what he’d prescribe to fix the dollar shortage system. Would MMT and everyone including foreign banks having accounts at the fed help?
Does anyone else listen to this and think that Ripple and XRP could be the solution?
Hoping George watches this…the Gammon/Snider bro crush leaves many of these very important things unsaid. I get it…I would leave the boomer tantrum out of my pillow talk with Jeff to George, some relationships are worth it.
In this context naturally, crypto stablecoins should be of big help....