The Offshore Global Dollar System | Jeff Snider

[@ebindanjan]

I've been listening to Jeff Snider for more than two years and I always learn something new from him. Thanks Joeri for this excellent interview.

[@randomvidz20]

In the year 2050, Jeff will let you talk.

[@_R.F_]

Honestly one of my favourite episodes. I appreciate how it was concentrated, dense and in depth with technical aspects and theory although, with a guest like Jeff, you most probably need a Mediator to be able to conduct the interview in the best manner possible to ensure that he doesn’t talk over you (even if what he says is very interesting) and so that we can better locate ourselves relatively to the subject on hand.

[@ronaldl9085]

Wonderful interview. I've been listening to Jeff for some time now, and this interview helped me to understand him a bit more. Thank you two very much for this excellent video!

[@sandworm9528]

42 minutes in, this guy very interesting - not often you hear an explanation that's plausible and not just inflation doom saying

[@ProgressiveEconomicsSupporter]

Wasn't the Euro-Dollar system also a very welcome tool to greatly facilitate money laundry and global flows for enormeous sums of illegally "earned" money like from drug sellings etc.? After the history with offshore "banks"

[@brausedrops8398]

Why would it tho euro dollars are just bank balances on offshore accounts aka European, Asian etc banks.

[@ProgressiveEconomicsSupporter]

@@brausedrops8398 exactly, offshire account on which the US central bank has no way to see or influence the money

[@loveliban1]

I actually work in security lending, always happy to see someone talk about it!

[@_Athanase_]

I've watched the whole video, it is hard to understand Jeff Snider's thinking without a summary of the concepts . I think a list of points, with their justification would help us understand his ideas.

[@topiasr628]

Is this a re-upload? I was fascinated the first time I saw this but now can't find the original

[@MoneyMacroTalks]

Sort off, you can still find the live version on the main channel under the "live" tab.

[@KajTallungs]

Love the video, your most interesting guest so far. But you might want to consider reducing the echo in your room. It's quite bad.

[@123_1]

I dont't really understand, why would you borrow government bond to be able to use it as a collateral, to get liquidity? If you have the money to buy it, you have liquidity, if you borrow the bond, you cannot use it as a collateral, because it is not yours... Did I miss something?

[@brausedrops8398]

To help you I would need to understand what's ut starting point. What are u trying to understand?

[@123_1]

The guy was arguing: you need government bond to use it as a collateral for liquidity because the market is working this way. And also: If there is not enough government bond supply you cannot buy bonds to use it as a collateral, so you cannot source liquidity from the market... My question is: Why do you need government bond to source liquidity, if you already have it to buy theese bonds at the first place?@@brausedrops8398

[@_Athanase_]

I've come back to this video after looking deeper into who Jeff Snider is. I feel like a disclosure of who he is, and what he does for a living is necessary. I've found that he is more of a salesman of financial services than an economist, and I believe that although his ideas are interesting to discuss, not giving the context in which he operates seems somewhat misleading. I enjoy your content, and I think that further introducing the guest of the podcast before talking to them in the videos would help us better understand.

[@DMBtomp]

He's always clear about his background. He's trying to understand his industry through deep research. He's very invested in making a better world, & also does his own work

[@_Athanase_]

@@DMBtomp In this podcast, he was introduced as an educator working for a university. When I look him up, I see that he is a promoter for an investment advisory firm. He has incentives that were not disclosed. I therefore think that his introduction was misleading.

[@DMBtomp]

@@_Athanase_ ngl that's pretty stupid. It's a podcast host introducing a guest rather than Jeff introducing himself. Plus what Jeff does is educate (he's put thousands of hours of free videos online, & writes prolifically). Plus the word "university" wasn't used. If you can point me to the advertising of his paid product he did in this video, I'm happy to be corrected (NB you won't find them). Be reasonable.

[@_Athanase_]

@@DMBtomp I wasn't criticizing his ideas, but the lack of a proper introduction before the interview. I think that before the interview, Dr. Joeri Schasfoort should have better introduced his guest. I've found that having an overview of the person (their occupation, background, education and interest) help give context to the exchange, something that was lacking in this video. "I enjoy your content, and I think that further introducing the guest of the podcast before talking to them in the videos would help us better understand."

[@_Athanase_]

@@DMBtomp I don't care much for Jeff Snider and his ideas, but I really like Dr. Joeri Schasfoort and his work. The comment were not intended to slight Mr. Snider, but give an opinion on the structure of the podcast. I find you rude.

[@ЛюбительСерфинга]

Hey Macro, tell us in brief what you learned from this podcasts really. I didn't learn ANYTHING!

[@roc7880]

so either u are an expert or an idiot.

[@miquelbassartlore8434]

I loved the interview, and thank you for bringing Perry Mehrling and Daniela Gabor on !

[@ProgressiveEconomicsSupporter]

Yes, USA needs the FED get back to the roots. But they cant do completely without the FED as a central bank - let them excercise simple MMT-prescribed tasks

[@idlikemoreprivacy9716]

Thanks for all the hard work you put in this interview! That's how economics should sound, as a social _science_. What's unusual is Jeff starts from evidence, a lot of it, the way e.g. anthropologists do. We will just end frustrated of believing lies unless we suspend the urge to make sense in minutes of systems with millions of reflexive agents across a hundred of countries and cultures that evolved for more than a century.

[@brausedrops8398]

Don't be fooled, there's aloooooooot of interpretation in his theory

[@silentwilly2983]

Sorry, not sure what it is, but find the conversation hard to follow. Certainly some good points and food for thought, but feel he several times misses the mark too. Snider talks like he knows all the 'secrets', but to me he is not convincing....

[@zvk75]

He is twisting the facts very weird his background are frames and seems he wanted to show something so this is a red flag.

[@roc7880]

if QE does not work, can you argue that reducing the money supply as Friedman advised also did not work? interesting, what was the geopolitics of this system? for example, did Iran use it before the revolution?

[@ProgressiveEconomicsSupporter]

I guess no one thinks that within the yield curve interest rates depend on each othe in a simple linear way. So you cant expect to increase the short-term rates by x and all other rates follow suit. Can't imagine that Greenspan ever was so naive? 🙂 However the rates are not completely independ either. Therefor, events like an inverted yield curve is taken as an indicator. So no one is surprised if something like this haopens

[@brausedrops8398]

In face as far as I'm concerned Jeff said alot of bs in that regard. Do u really think central banks don't observe the yield curve.. I mean that's their literal job. It's just outerworldly to assume Greenspan doesn't know that there's no 1:1 effect..

[@Hammerfist19023]

Much better explanation than “buckaroos”

[@idlikemoreprivacy9716]

It't pretty much the same explanation, based on the material reality of what financial institutions and ppl really do. Mosler traded professionally for a bank in e.g. european countries' government bonds and is usually as nuanced and hard to follow as Snider here. Problem is how to describe the most complex system ever created by humanity.

[@Hammerfist19023]

@@idlikemoreprivacy9716 I don’t see how they are the same tbh

[@timvdmeer4122]

Il iked the first part but after the viewer questions where answered this guy just kept on talking and it was very hard to follow. I don't think Jeff understand he needs to adjust his speaking to the audience listening. I think that you do understand this, Joeri. Unfortunately you wheren't able to combine his epertise with your skill in explaining it to the audience. Still not a bad talk but it had so much more potential. Keep up the video's , Can't get enough of it.

[@gigante87]

What happens to the eurodollar system with the end of libor?

[@brausedrops8398]

They are two separate things, completely unrelated.

[@gigante87]

@@brausedrops8398 libor is the price of eurodollar

[@jeongkim6679]

Great guest. Excruciating interview. More ads than commercial TV

[@jagolago-bob]

try an ad-blocker. I don't get a single advert.

[@xyz-uw3ps]

Unfortunately, clearly labeling different topics in the video gives KZbin plenty of opportunities to stick ads in between sections.

[@marklee81]

Ledger money goes back to ancient times. "Debt: The First 5000 Years" by David Graeber is a good source. MMTers talk about "bank money" vs "real money" all the time. If I shovel your driveway for an IOU of $20, that's real money creation denominated in dollars, but only the Federal Reserve Bank of the US can create true dollars. Eurodollar banks aren't FDIC insured, so they are much more prone to default, just as you might be if you can't give me that $20 you owe me. Russians can only withdraw $10k in dollars right now, because bank failure is a real possibility. Edit: Oh, and another similar system exists with commodities and even stock. (Look up the Federal Reserve Bank of NY gold vaults or Cede and Company for more info.)

[@jomigregory7253]

But eurodollar money creation is backed by collateral, right? Ideally US treasuries? What other collateral is used by eurodollar banks

[@marklee81]

@@jomigregory7253 Depositors can still lose their deposits. They're not insured by the currency issuer, like FDIC banks are.

[@hemiedwards217]

It's not remotely compatible. The Eurodollar markets are focused on institutional investors not retaill savers. Even FDIC accounts have a limit unless you're Silicon Valley tech moguls lol.

[@brausedrops8398]

​@@jomigregory7253no they're not. Basically imagine Goldman Sachs has a current account with HSBC in Hong Kong. So whenever a HongKong citizen buys American goods, he pais with his Yuan account. The HK HSBC decreases the buyers current account by the respective Yuan amount. It then increases the Goldman current account in Hong Kong, with HSBC. That current account is a liability of HSBC towards Goldman. Now Goldman pays the seller of the good by increasing the seller's current account with dollars on the American side. The current account Goldman has with HSBC in Hong Kong is the euro dollar account. This is a liability of HSBC towards Goldman and it is of course not secured by anything.

[@colinedgar6742]

This mf spittin

[@pif4347]

Hmm, so Fed interest rates wouldn’t affect Eurodollar settlements because these are only ‘claims’ on dollars? It that why the guest says rates are act independently?

[@brausedrops8398]

They are two unrelated things. Interest rates are interest rates. Euro dollars are current accounts held with a different bank abroad. Say your personal bank has their own account with a bank in Asia just like you have ur account at ur bank wherever u are.

[@wilfredpeake9987]

This is why I believe governments need to start subsidizing small business loans

[@Xvz745]

1 year after the interview having the benefit of hindsight I realised most of his theory didn’t pan out, central banks have a lot of influence and deflation thing is straight up bull. My bs radar went up when he kept talking past you trying to interject as loads of people do this when they don’t want to explain point by point because they don’t understand each point too much or the points are contradictory, so they just try to get their theory out as fast as possible, it’s good you had the talk but man

[@nicholasas7786]

Agreed, I kind of lost him after he started claiming the there wasn’t enough lending in the economy post 2008. That banks weren’t able to lend to business, when if fact I doesn’t seem that way at all. Idk, I’m kind of stupid, but I just don’t understand how a decade of low interest rates doesn’t contribute to increases in business borrowing.

[@nicholasas7786]

Also his idea that time doesn’t have a significant effect on the discount or premium a bond has is kind of nuts. I’m not super knowledgeable, but that seems to go against most of modern financial theory.

[@blasty137]

I don't have knowledge to comment on validity of any of the points that were made, but as a viewer without any background in economics who is watching these videos in order to try and make sense of what's going on my impression is that the first part of the talk was quite informative but later the guy became obnoxious af and was all like "it's complicated, I'm the only one who understands everything, everyone else is stupid and don't know what they're doing".

[@brausedrops8398]

As someone who is fairly familiar with these topics I can say ur impression is right. I couldnt stand the way he talked and his points were all messy and chaotic.. the contrary of someone who really knows what he's talking about. If you know what you're talking about you can break it down into easy simple words, not like he did with his gibberish to sound cool

[@brausedrops8398]

He might know alot but he clearly doesn't understand as much as he knows. If you understand something you can explain it in simple words and don't need to refrain to gibberish language.

[@G-McBee]

I think Jeff is right in his analysis. But, he's only really talking about the financial system, of course banks want to lend more because that's how they earn their money, from fees, etc. Banks may create the money to keep the economy liquid but they only survive by being parasites on true productivity in the real economy. A bigger economy will produce more income for banks. I think Jeff is wrong if he thinks that a badly managed financial system is the reason for low growth and a shortage of people wanting to borrow ( which fuels the financial world). Supply chain blockages, politics, and the already huge debt burden have more to do with why there is little growth and hence a looming recession. I don't think that any underlying economy has enough capacity to absorb an ever increasing amount of debt , low risk or otherwise.

[@sandworm9528]

Public sector debt is exactly equal to private sector savings though, so not necessarily a bad thing

[@EM-ty5bv]

I'm the first view? How?

[@MoneyMacroTalks]

I haven't actually released this video. I'm still working on the timestamps for the description. I'm guessing you found it in a playlist 😉

[@wiseguygamer7593]

@@MoneyMacroTalkscould you please break this down and explain this. I’m generally confused on what’s his general policy. Is He arguing for a rethinking of the global financial system rather than placing blame on free markets or advocating for more traditional regulation. He states that the regulation made banks take less risk in which decrease the money supply which made business growth stagnant?

[@zvk75]

This Mr Sniner doesn't know that the banks have subsidiaries in a form of non banks Jesus. This guy is baseless