Discover and read the best of Twitter Threads about #zoltan
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Join the Money View Symposium! The overall theme is the role of the US Dollar in the world economy. In this thread I'll highlight key sessions.
đ 27-29 January, online
đView program & register at ysiproject.org/mvs
đ Hosted by the YSI Financial Stability Working Group
đ 27-29 January, online
đView program & register at ysiproject.org/mvs
đ Hosted by the YSI Financial Stability Working Group
Friday, 27 January, 9.30am EST
Keynote | The key currency approach: Why a "minority view"?
Perry Mehrling (Boston University) @PMehrling
discussants: Maria Cristina Marcuzzo (Sapienza, UniversitĂ di Roma) Ramaa Vasudevan (Boston University) @BUPardeeSchool
Keynote | The key currency approach: Why a "minority view"?
Perry Mehrling (Boston University) @PMehrling
discussants: Maria Cristina Marcuzzo (Sapienza, UniversitĂ di Roma) Ramaa Vasudevan (Boston University) @BUPardeeSchool
Friday, 27 January, 11.30a EST
Beyond National Income and Product Accounts - Toward new accounting standards
Claudio Borio (Bank for International Settlements) in conversation with Perry Mehrling (Boston University) @BIS_org @HyunSongShin @PMehrling @BUPardeeSchool @BuddyYakov
Beyond National Income and Product Accounts - Toward new accounting standards
Claudio Borio (Bank for International Settlements) in conversation with Perry Mehrling (Boston University) @BIS_org @HyunSongShin @PMehrling @BUPardeeSchool @BuddyYakov
It seems that #Zoltan has been quite busy lately!
The newest, already 5th part of his "War"-series, was published on January 6th.
In this little #thread i've summarized some of the highlights of his piece "War and Peace:
đ§”
The newest, already 5th part of his "War"-series, was published on January 6th.
In this little #thread i've summarized some of the highlights of his piece "War and Peace:
đ§”
"... four âwarâ dispatches last year: War and Interest Rates, War and Industrial Policy, War and Commodity Encumbrance, and finally, War and Currency Statecraft. In these, I identified six fronts (..) in âmacro-landâ () where Great Powers were going âat itâ in 2022:
"the G7âs financial blockade of Russia, Russiaâs energy blockade of the EU, the U.S.âs technology blockade of China, Chinaâs naval blockade of Taiwan, the U.S.âs âblockadeâ of the EUâs EV sector with the Inflation Reduction Act,
The Grand Chessboard. A Mega Threadđ§”.
#Zoltan Pozsar's latest piece is titled "War and Currency Statecraft". In it, he lays out his geopolitical views in greater detail.
Zoltan iterates the transition from a unipolar to a multipolar economic world.
1/
silkroadbriefing.com/news/2022/11/0âŠ
#Zoltan Pozsar's latest piece is titled "War and Currency Statecraft". In it, he lays out his geopolitical views in greater detail.
Zoltan iterates the transition from a unipolar to a multipolar economic world.
1/
silkroadbriefing.com/news/2022/11/0âŠ
If accepted, the new proposed BRICS members would create an entity with a GDP 30% larger than the United States, over 50% of the global population and in control of 60% of global gas reserves.
2/
2/
"China is proactively writing a new set of rules, creating a new type of globalization with new institutions like the
Belt and Road Initiative, BRICS+, and the SCO."
One World, Two Systems.
3/
Belt and Road Initiative, BRICS+, and the SCO."
One World, Two Systems.
3/
Folks, you know that I enjoy reading every piece that #ZoltanPozsar at #CS writes. His latest piece "War and Commodity Encumbrance" (Dec. 27th) was particularly worth reading. Here's a little #thread with the most important parts:
"A recurring theme in my dispatches this year has been that in a moment when the world is going from unipolar to multipolar, the actions of heads of state are far more important than the actions of central banks."
"Central banks will be behind the curve in this game, and if investors read only the speeches of central bankers but not statesmen, they will be even more behind the curve. The multipolar world order is being built not by G7 heads of state but by the âG7 of the Eastâ."
I have just re-read Zoltan's piece called "Oil, Gold, and LCLo(SP)R"....Here's my little summary:
Regardless of fundamentals, global banking reserves are not in danger of a liquidity crunch or default. This is because there are enough emergency backstops in place to essentially bail out anyone that gets into trouble by printing more reserves.
This is not the case in energy markets. Global demand for oil exceeds supply. The US and OPEC+ do not produce enough oil to supply the west. The Biden administration has been relying on the SPR to artificially lower oil prices and meet demand.
Just finished reading the new piece by #ZoltanPozsar "Oil, Gold, and LCLo(SP)R...Fascinating read (as always), here are some highlights:
"The SPR is like the o/n RRP facility. It can be tapped when oil levels are tight. But the SPR is finite, and recent releases have brough reserves down to levels
we havenât been at since the 1980s. The 400 million barrels left in it isnât much:
we havenât been at since the 1980s. The 400 million barrels left in it isnât much:
it could help police prices for a year if we released 1 million barrels per day (mbpd), half a year if we released 2 mbpd, and about four months if we released 3 mbpd."
Lot's of discussions on Fintwit around SNB's use of the USD swap line with the Fed.
Here a quick thread to explain this, but without the Fintwit conspiracy theories đ
Here a quick thread to explain this, but without the Fintwit conspiracy theories đ
As @JeffSnider_AIP showed, banks in Switzerland started borrowing USD from SNB last month. SNB raises these dollars from the Fed through the USD swap lines that these two (and other) central banks have. This week roughly 6bn were borrowed, last week roughly 3bn.
What's important to recognize is that the FX market has de facto become an attractive source of funding for Swiss banks. The mechanics are tedious, but are roughly as follows:
As previously noted, i really read everything that #ZoltanPozsar puts out...His Aug 24th piece was terrific again. In this #thread I summarize the most important takeaways: đ§”
"War means industry.
Global supply chains work only in peacetime, but not when the world is at war, be it a hot war or an economic war.
Shadow banking system or chipset diagram?
âThe shadow banking map was graffiti that I sprayed on the wall: looks cool but what the hell is this? Perry burnt into me that money is hierarchical. Thereâs a hierarchy of institutions, a hierarchy of prices, a hierarchy of spreads.â
âThe shadow banking map was graffiti that I sprayed on the wall: looks cool but what the hell is this? Perry burnt into me that money is hierarchical. Thereâs a hierarchy of institutions, a hierarchy of prices, a hierarchy of spreads.â
"His view is the third Bretton Woods era ... defined by 3 pillars: The Chinese RMB is going to play a far larger role; gold is going to play a bigger role in foreign reserves; countries are going to stockpile reserves in essential natural resources in addition to financial ones."
âPeople are learning that you can have all the money in the world, but if you canât buy shit with it, itâs a problem. So you might as well stock up on stuff.â
#zoltan
#zoltan
đš This is a MUST READ.
Russia attacking Ukraine is only the opening act of the movie, Russia (& China) attacking the $USD is the climax of this movie
Russia basically baited us into sanctioning them, a trap we gladly & emotionally walk right into it.
Russia attacking Ukraine is only the opening act of the movie, Russia (& China) attacking the $USD is the climax of this movie
Russia basically baited us into sanctioning them, a trap we gladly & emotionally walk right into it.
Just remember, when sellers (Russia & China) become an absolute monopoly in the global market, then SELLERS SET THE PRICE (of $USD).
Friend sent me this: besides a few, notice many don't support sanctioning Russia are mostly resources, food, textile, & consumer products exporting countries?
What happens when they follow suit to get out of the king $USD control?
In world of monopoly, SELLERS SET THE PRICE
What happens when they follow suit to get out of the king $USD control?
In world of monopoly, SELLERS SET THE PRICE
(1/9) As another round of stimulus hits bank accounts, we are already seeing the impact the waves of money is having on financial plumbing. While certain short-term rates are being pushed negative, a different type of "repo crisis" may be building.
(2/9) The current round of stimulus is being funded primarily through the TGA drawdown and not new UST issuance. QE is continuing at $120B/mo which drains collateral and replaces it with reserves. Both increase the supply of money relative to collateral.
(3/9) This excess money has two primary outlets: (1) Deposit at a bank, which can pay IOER less expenses or (2) Deposit with a money fund which can pay RRP rate adjusted for returns & expenses. Currently these rates are zero or slightly positive.
