Eurodollar & The Money Printer with Lyn Alden

[@StaySmart101]

Lyn is back! I drop everything and get my coffee too ☕

[@regal360com]

Lyn is one of the brightest minds in finance, and that was a pleasure to listen to. Thank you.

[@csavory]

i wish this was 100 hours long. My favourite Lyn Alden videos. Great questions.

[@JustinSmithWY]

I've been interested in the money rabbit hole for a long time but this little series with Jeff and Lyn has completely blown my mind. I really learn a lot from your conversations Peter.

[@10000words1]

Great convo, Lyn is a certified national treasure. However...I wish you guys had addressed Jeff's main controversial point, namely that the true threat now is DEflation from illiquidity in the Eurodollar system (not the domestic system)

[@2010COpall]

Yeah, I wish Jeff or Lynn or anyone else would do a deep dive into the whole concept of the "collateral multiplyer", or how the un-audited Eurodollar system makes it possible to reuse the same collateral over and over again (bets on bets on bets). I'm not sure yet, but it seems that every once in a while, like in 2007-08, something happens that makes everyone in the Eurodollar system recalculate the true value of the collateral that they have been too willing to accept. The bets-on-bets-on-bets begin to unravel and the big-time money dealers start pulling out of the market.

[@MrReconjon]

I don't think they really disagree much structurally. The difference is paths. I think they both agree that there will be a fiscal response that keeps price pressures going up structurally (financial repression). The primary difference as I understand their views is that Jeff believes it to be a tradeable event where bonds will benefit from the impetus that creates the pivot and lyn is more skeptical of the bond markets response.

[@goodszx]

check out at 59min.

[@mpower2386]

@@2010COpall that will change soon.. we are hitting phase 6 of UMR in septembre. Big players trading billateral derivatives via ISDA will be forced to post collateral in third/try party segregated account. Basically if you and me enter in, lets say a total return swap trade, we will both have to post collateral as soon as we hit 50mm of notional on the trade. That collateral wont be reusable by any party. Currently, only the sell side is asking for initial margin collateral on OTC deals and not always. Demand for collateral will only go up. It will be interesting to set how that will play out.

[@Nico-rx1ek]

Exactly. Plus an explanation of how the euromarket works would be interesting as well.

[@michaeltbarry2096]

Lyn, your professionalism, knowledge, willingness to converse and share is beauty as it was meant to be. Thanks.

[@abrahamnorthhampton3327]

Outstanding interview. I think Lyn and Jeff Snider agree on about about 80% of the how the system works. It would be valuable to have them together to discuss the similarities and differences in their views.

[@PatrickN.]

Abraham, I disagree. Lyn, has it figured out and Jeff doesn't. If they went on together, all Jeff would do the whole time would tell Lyn she was wrong about everything she said. And she would be in full defense mode the whole time. It would be like talking to Peter Schiff about Bitcoin. He is nonsense. Lyn is SENSE. It wouldn't go well, and I don't think either one would agree to do it anyway.

[@sunnycorax]

@@PatrickN. That sounds more like you are projecting your own opinions and bias onto Lyn in order defend it.

[@lazerhawks]

+1 to get them in the same room to discuss these things together. Still hard for me to wrap my mind around all the places they disagree, let alone all the implications of what they're saying.

[@quara0n89]

@@PatrickN. ​ I doubt that, as they were together in an interview last year with george gammon and they seemed pretty aligned on most topics.

[@PatrickN.]

@@quara0n89 hmm.. ok. Maybe I stand corrected then. But just by the principles of it, Lyn a Austrian Economist should be at odds with Jeff who is a Keynesian Economist. They just don't mix. That's why Jeff doesn't get bitcoin.

[@vgomezbiz]

Who ELSE has been waiting to watch this one. Ain't even watched it yet and I'm commenting 😩

[@doktarufas]

Lyn Alden is always straight to the point and very creative in the way she breaks complex jurgon into precise points. We don't deserve her.

[@TMOC1977]

Lyn is great! So knowledgeable.

[@FixedWing82]

I see Lyn I hit like button

[@gamanshoo]

What an AWESOME interview!! 👍👍👍💪💪💪. I (and many others) have a tough time understanding Jeff and Emil….BUT LYN ALDEN makes it SO EASY to understand… LOVE LYN!

[@PatrickN.]

Hey Gab, stick with Lyn. Jeff is talking nonsense. The truth is with Lyn and that which makes sense. I got so agitated listening to Jeff, I about exploded. In my experience through life, if someone talks so complicated and hard to understand, it means they themselves do not know what the hell they are talking about!

[@carbonsubie]

Jeff was on 2 weeks ago, and he did a good job "explaining it like 'm 5." It was much easier to grasp than when he and Emil just roll through things because Voltaire both already understand the material.

[@gamanshoo]

@@PatrickN. thanks for the advice. I value Jeff and Emil too. I personally like the way Lyn explains the subject matter. 👍

[@PatrickN.]

@@carbonsubie I can tell you that Jeff and Lyn would not agree on alot of things. Lyn made that point clear numerous times during the video. Problem is she is too polite to say he is flat out wrong on much that he says.

[@Ash__7]

@@PatrickN. "This is hard to understand, therefore it must be wrong" - If that helps you sleep at night. Macro isn't for everyone.

[@P__114]

Hell yes! Lyn is the best. This made my day.

[@williamgianopulos636]

Lyn is brilliant. Love how she simplifies very complicated matters. Would have enjoyed more discussion on three matters: 1) Japan--and the effects of their huge debt:GDP ratio. How they handle this, and how it impacts their country. 2) The slow shift toward the Ruble. 3) the supply chain problems and impact on inflation.

[@sanshuma0]

Following from Jeff Snider, this one with Lyn makes it an epic conversation! Incredible ...

[@miketaye]

Her right hand under the table during most of interview journey is what I noticed. enjoyed the conversation to highlight what’s hidden.

[@scottnovitsky9253]

So glad to see the Euro$ getting the attention it deserves

[@cyclingphilosopher8798]

Jeff's main gripe with Bitcoin was that it isn't elastic. You need some form of elasticity in money to accommodate fluctuations in productivity (demographic-wise or innovation-wise). It's the same reason why the gold standard failed.

[@stuartporteous7762]

No perfect system. Gold standard is too inelastic, fiat standard is too elastic. Also policy makers who haven't got a clue. What do we do? What's the best system...

[@abraxas511]

That is what perfect money is, it all has VALUE. That is the point of bitcoin and was of gold standard. If a gov wants to accommodate fluctuations in productivity they need to deal with the problem without just printing money(elasticity) that has no value. The bloat and meaningless programs that just buy voted and enrich friends cant happen if everything the gov does must have value. The way to get through fluctuations in productivity is to cut bad programs, use the money saved to bridge the situation. Now, they just print more money, bloat the system, the bad program stays and more are created. "elasticity" IS the problem bitcoin is here to solve. His main gripe was that the gov cant mess with the supply, which is the main problem.

[@cyclingphilosopher8798]

@@stuartporteous7762 The fluctuations in productivity due to demographic changes can be anticipated easily. The fact nobody seems to worry about the fact that we are going to see population decline soon, something we haven't seen since the Black Death in the 14th century, baffles me. Only Eric Basmajian seems to address this issue. The fluctuations in productivity due to innovation are very hard to anticipate, no matter the degree you have, as that process has fits and starts.

[@stuartporteous7762]

@@cyclingphilosopher8798 How do you reverse population decline? Order people to bang each other..?

[@TheAdamAdy]

Gold standard didnt fail because of inelasticity. It failed because US allowed the dollar to spread so fast it didnt have enough gold to redeem it for the dollar. Its the way the system worked that failed, not the standard it failed. Bitcoin is global money, its not tied to a bank with redeemable gold. It just is.

[@tonequin4562]

Can’t get enough of Lyn😍

[@jachmd]

Always great to listen to Lyn Alden's lectures about macroeconomics.

[@barwegen]

Really really glad you're discussing this offshore (dollar) system!! Thanks so much!

[@mkmstillstackin]

Very good conversation. Lyn is super knowledgeable and great at explaining these relatively abstract financial concepts.

[@astralislux305]

Great info in clear language. Lyn is so smart.

[@bilbobaggins4462]

Absolutely fantastic interviewing! And Lyn was able to explain it all clearly and concisely. This should be mandatory viewing for our dimwitted leaders running the country and our central bank!

[@mohlini1]

I was waiting for this. Thanks for inviting Lyn to do this follow up.

[@terryballew4859]

Lyn to win ! She is really a wealth of knowledge ! great interview

[@lsueddie]

How smart is she! Holy cow. I listen to everything she says every time!

[@amyjohn850]

I see Lyn. I click. She is so intelligent, beautiful and classy 😍

[@redgatecrt]

Lyn is the only person I trust for information in finance and economics. When beauty crosses over with knowledge you can’t go wrong

[@tuckere5380]

Lyn is amazing. She does such a great job explaining the concepts that describe our modern monetary system. "Base money" and "Broad money" are concepts I had never heard of before, nor their impact on distribution of wealth.

[@PacificOutspread]

Awesome show. She explains it all so well!

[@Mrluke413]

One of the smartest people I’ve ever heard. Brilliantly loquacious.

[@nazimrahman]

I would have to listen a few more time and do a lot more thinking to fully understand and appreciate the knowledge I gained from this discussion.

[@RylanHeller]

Lyn is the best.

[@ciscohernandez8606]

Lyn Alden is AWESOME! ;)

[@pamorim01]

One of the points from Jeff's interview that I struggled with the most, was when he said that QE money is not a contributing factor to inflation because it goes into the balance sheets of financial institutions and just stays there. They can't do anything with it other than hold it. Not so sure I buy that one, would have good to hear Lyn address that particular point. Maybe one for when you bring the two together :)

[@taylorhobbs747]

I think the argument is that it QE doesnt contribute so much to CPI inflation but does contribute to asset inflation. The main culprit of CPI inflation i think is fiscal stimulus aka helecopter money/the 1200 dollar checks to citizens

[@PatrickN.]

Lyn just said in this interview that banks can purchase equities with their reserves I think, and that is why it drives assets higher. Please confirm if you or anybody understood it that way too. I had so many of my own questions for Lyn that Peter didn't ask.

[@richiedubs1062]

Imagine I take a loan from a bank and they accidentally credit me a quadrillion dollars. I could theoretically ruin the economy. But what if I could only buy a restricted class of assets with it? In this case, I could only buy the reserves of other lucky idiots who happened to be gifted with the same banking error. We can exchange reserves on our balance sheets, but otherwise we're pretty harmless. So what's the whole point of that "reserve" system if it's closed-circuit? No point, except it counts as (base money or collateral) to create loans, which is "REAL MONEY".

[@richiedubs1062]

To continue my scenario, as long as my real money loans are productive in nominal terms (real terms another thing!!!), I'm good. I keep my whacky superpower also called a banking license.

[@lindyswing4368]

@@taylorhobbs747 Asset inflation contributes to actual inflation too. Somebody could just sell their inflated portfolio and there you go.... money into the system.

[@anbesivamkamal]

Wow! This is an amazing interview. Thanks!

[@JohnDobbertin]

YES! Let's get them all together for a round table! 👏👍

[@greganastas]

I learn something from Lyn every time I lisent to her. Amazing thinker. Great questions to clarify so much of this shit.

[@FabianMoser]

Lyn is awesome! Thx you very much

[@gregthompsan6844]

It'd be great to hear Lyn answer Jeff's concern that bitcoin's supply inelasticity makes it unviable for addressing the demand for money, which is currently addressed by the eurodollar system.

[@fzb4220]

Yeah, one crucial point they forgot to touch on and probably also the most interesting point...

[@jasonn5196]

I love how Lyn speaks, I get hooked. they are next level professional, no armpits in shot, no drinking in shot and super sharp. I wonder what training or induction they have had or is that natural for them ? I have also been wondering if many of the higher prices are the new price for things and not temporary. Prices increase naturally in our system and many people are still expecting prices to go back to early 2000 levels.

[@stevendobrin3764]

Read "central banking 101" by Joseph Wang. Explains everything Lyn and jeff snider are saying in incredible detail. Incredibly informative book. And it's only $14 on amazon!!!!!!! Also you should interview Joseph Wang, Peter.

[@stuartporteous7762]

Absolutely 👍🏻

[@aenima5074]

agreed. Joshep wang also talked about it on a podcast

[@okianm]

Love Lyn to bits

[@tbone5654]

Please get Jeff Christian on. He's a monetary historian and commodities genius. Since 1980 the guy made 26 long term calls to go long or short gold. 25 of those trades were winners, the one he got wrong resulted in a loss of just 1.5%. Total returns (with no leverage) were over 13,000% if you acted on every recommendation. Jeff mainly deals with billionaire clients, multinational resource producers and large governments, but he also has time for smaller investors. I had an amazing conversation with him for over an hour once. You should contact him at CPM, I'm sure he would be happy to come on the show.

[@user-me3np9cx2d]

This is a great conversation!

[@rodjames5771]

Thank You for this wonderful interview :)

[@dude3678]

Waiting on Lynn's channel. It would be awesome.

[@josephfriday2661]

Thanks Lynn, always enjoy listening to you.

[@moebel303]

peter, the one thing you seem to be forgetting is, that since money is created by loans, it is also destroyed when the loans are repaid.

[@robins7594]

Hi Peter- haven’t checked you’re channel for a little while. Love it but it is so funny you were asking the same questions last year too; Lyn is a very patient lady 😂

[@pieterg1204]

Amongst the best. Thanks!

[@kenambo]

You don't see it very often but Lyn has a beautiful smile. It must be that big brain pushing out those teeth. Seriously though Lyn always has an in depth answer to every question and spoken with such authority. Amazing.

[@elchikoadyl7410]

Peter, Jeff's main criticism of bitcoin was that it's supply is inelastic not that it's price is volatile

[@rumco]

Lyn Alden, you are amazing.

[@slamslidestyle]

Super stoked, Peter, Danny, and team are fucking crushing it. Great conversations recently, and I’m enjoying seeing and hearing more of Danny. He seems to be an important figure in Peter’s life and an important one for this show.

[@britt7299]

Again, what a great podcast!! There is so much out there what has to be told by people like you & your guests. Lyn Alden is one of the best! What a knowledge does she have! To be honest; I needed to listen the Podcast 2 times, to fully absorb the information.....😅🤭😁

[@adamcar9376]

This is SO good ! Same story goes in Poland ….

[@mickywes3733]

I love this woman!

[@bokka409]

"woman"😂😂😂

[@ns7220]

Lyn is amazing...So knowledgable .and talented...

[@MKI4EVA]

God bless Lyn.

[@coreybates7412]

Hey Pete. Have Peter Schiff on for a friendly gold/BTC debate and talks on the FED

[@dirtandfortune6897]

Another amazing interview with Lyn. Thanks!!

[@Four_Eyes]

Superb episode mates. You guys asked a lot of questions I've wanted to ask Lyn, especially where Lyn and Jeff don't exactly agree.

[@jonnes__4657]

Great interview. 🙏

[@ycnexu]

Extremely well explained by Lyn

[@abrahamisabella8513]

Great interview 👍

[@therealtechnomatze642]

thank you very much for that!

[@gregorya326]

Thanks for the discussion, when it comes to understanding money supply, Eurodollar, Lyn and Jeff are the best.

[@lancechapman3070]

George Gammon has covered all this on his old whiteboard in three easy steps.

[@rubenmejia7173]

I love Lyn

[@moreexplosions4441]

God bless Lyn

[@peterandersson5242]

Waiting for this episode! 👏👏👍👍🥂

[@derek.seaborn]

Much love and respect to Lyn.

[@codyr2318]

I really like Danny contributing to the conversations!!

[@rsvp6]

I Like Lyn Alden

[@livinginitaly16years80]

She explained the euro dollaro better than anyone

[@jamesderoc6717]

warning to power centers . . .the people are beginning to understand very well the game scam . thank you ms Alden

[@bartkula1469]

She is sooo SMART

[@AnitaCorbett]

In discussing the Eurodollar- I didn’t hear it said that after Bretonwoods the Eurodollar was used to pay for energy- it was tied to oil .

[@patrickdennis7041]

I love Lyn Alden. I was trying to find someone who could simplify what Jeff Snyder is saying. I am starting to understand Eurodollars.

[@EricBadiere]

Formalized Cantillon effect!

[@waynerichardson1051]

She's amazing!!! Wow!!

[@AA-qq9wx]

Great follow up on Sneider's observations, however, I think you forgot to discuss with Lyn the elasticity of money observation that Jeff brought up

[@lemorch1857]

Awesome content guys,, Lyn is a pragmatic genius I could listen to her for hours.

[@Jimmybob21]

Fantastic could listen to lyn all day 👏

[@noneofyourbizness]

no one knows her onions quite like Lyn Alden. super clear explanations too. Although i have heard her go through this fed/QE/broad/base money etc, area three times now.

[@qorazx]

And suddenly there it is, a white t-shirt

[@theswampkid1219]

Lyn is cut. also a genius.

[@mandralliance]

Wow...amazing content

[@aramis8656]

You keep asking for someone to explain the FIAT money creation system to you so let me perhaps try and do it with a story. Think of a time before money: Imagine you are a baker and every week you bake a loaf of bread and I come by and trade 6 eggs for it. If I show up one day and don't have the eggs, you have a choice to make. You either don't give me the bread, (which will be damaging to you because you've already incurred the cost of making it) or you can accept a promise for me to bring you the eggs next week. So I pull out a piece of paper and write on it "I owe you 6 eggs" and sign it. Then next week I come over and I give you 12 eggs (6 eggs for new bread and 6 eggs that I owe you and you give me back the piece of paper and I tear it up. For as long as you held that promise the money supply had expanded. When I repaid you and tore the promise apart the money supply contracted. You could've even gone to the milk man and exchanged that piece of paper for milk and then I would have to go to him and pay him the eggs that the promise is good for. This is the FIAT system. It is a system where people trade promises. Banks are the arbiters of these promises so that we don't all have to record promises between us.

[@joythought]

Well done. That is a solid way of explaining the core purpose of money.

[@selm006425]

Great explanation of the eurodollar system, I have heard that term used often and never really understood it, thanks!

[@PNNYRFACE]

Good show lads

[@AnthonyJones-gf6yv]

This is exciting

[@surfrico]

Excellent content. Thanks for making and posting this.

[@KimetsuNoYaiba100]

The way loans work is that for every loan the bank HAS to create an entry in its ledger. If a Argentinian business person borrows from Argentinaian bank then the ledger look like . If a Argentinian business person borrows from US bank then the ledger at Argentinian bank looks like . For this entry to be created at Argentinian bank they need confirmation that this business person was indeed issued a 1$ loan by american bank. They do this by using SWIFT messaging passing system to pass letter of undertaking.

[@alignedminds1193]

The point that was not being understood in terms of “how was the money created” this is based on the fact that banks have a license to create currency. So if a bank have 1 unit of currency they can create for instance up to about 13 units depending on their local regulators requirement. So if the bank have 1 USD they can lend against that, which creates new currency based on the loan agreement combined with their capacity to create currency. Base currency + Leverage ratio permitted by their regulator + the specific loan agreement with the specific loan = new amount of currency to create for the loan

[@KCubas]

JEFF: QUESTION "Why is it you think the Euro dollar system is a bad system?...you think it's bad money?" LYN: ANSWER "Because, it's--well one it's opaque; it's hard to audit. I mean imagine like a, a blockchain that you, you don't really know the supply of, and you don't fully know the rules for how it's crea.., you know, new units are created or destroyed...like you kinda know but..(JEFF CHIMES IN w/ jokey sarcasm: "Etherium" as Lyn continues)..you really don't know... JEFF CONTINUES: Etherium, Etherium... (Lyn begins to 😁) is that Etherium you're describing? Both now begin to crack-up!😅 for just a moment. My a favorite part of their interview for me. You can feel the genuine friendship between the two. Lyn seems at her most comfortable when speaking with Jeff. A wonderful tandem! Lyn & Jeff Both pause and begin

[@endthefed5304]

Yay Lynn!!!

[@MMISize]

Been looking forward to this Episode!