The US Dollar Index $DXY is at its highest level since 2002, up 49% from its low in 2008.
Think about the Companies and Governments with debt denominated in $USD.
The Global Financial System is starving for #liquidity...
Think about the Companies and Governments with debt denominated in $USD.
The Global Financial System is starving for #liquidity...
Liquidity can be defined as the Global Financial System's CAPACITY of finance/refinance it's Debt.
In other words, liabilities are collateralized by other liabilities, all the way down.
But that becames a problem when Debt is too much and more Collateral is required...
In other words, liabilities are collateralized by other liabilities, all the way down.
But that becames a problem when Debt is too much and more Collateral is required...
The FED may pivot before everyone thinks!
Collateral, by far, biggest threat to the global economy and money (Euro$) system.
Repo fails along w/absurdly high T-bill prices demonstrate conclusively just how dangerous things are right now.
Collateral, by far, biggest threat to the global economy and money (Euro$) system.
Repo fails along w/absurdly high T-bill prices demonstrate conclusively just how dangerous things are right now.
FED tightening always "breaks" something!
A poorly-designed system...
A poorly-designed system...
And unfortunately that will be the consequence...
• • •
Missing some Tweet in this thread? You can try to
force a refresh
