Loading ...“You have to understand what the Fed says in public is not what it says in private. You look at some of the academic studies, the literature, they know they have no idea what they’re doing. But their job requires them to tell the public that they do.”
Jeff Snider is co-host of the Eurodollar University podcast and Head of Global Research at Atlas Financial Advisors. In this interview, we discuss the crazy possibility that nobody knows what money is, and as a result, nobody knows how to run or fix the economy. Central banks and governments are essentially engaged in a high-risk game of pretend.
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Every year around 800 million containers (categorised as Twenty-foot Equivalent Units, TEUs) are handled by ports every year. This represents around 80% of official global trade. Harvard has produced an incredible visualization of total global trade. They have populated the globe with the origin of exports of every type of product. Each tiny dot represents $100 million of exports. The globe is covered in a mass of tiny dots.
This complex, interconnected and shadowy web of global trade, where final products, intermediate inputs and raw materials are exchanged on a massive scale, represents about 50-60% of global GDP. The rest is made up of all kinds of activities, business investment, personal consumption and government expenditure.
The IMF predicts that the combined GDP of the world economies will exceed $100 trillion by the end of 2022. However, this is dwarfed by global wealth, which is estimated to be over $1,500 trillion. To put these numbers into context, US debt is currently estimated to be over $31 trillion, whilst global debt is reckoned to be over $300 trillion. Global finance, which helps manage and fuel global trade and debt, is expected to be valued at $25 trillion this year.
These are obvious gigantic numbers. Yet, these figures aren’t the thing that should give you pause for thought. What should stop you in your tracks is that nobody really understands the workings of this complex system, let alone is in control of the resultant global economy.
Most of the global trade is conducted in Eurodollars, which is money generated outside of any control of the US or the nexus of other countries’ Central Banking/Government institutional structures. Eurodollars are not understood by the major actors involved in oversight or management roles affecting global economics. That is why nobody knows how to fix the issues with the global economy. It’s because nobody knows what money actually is.
Comment:
I assume you all know, the high Dopy/Dollar makes imports a LOT cheaper, good for resellers, and very bad for the US prosperity, as we all witnessed after 1971 gold backing removed.
On the opposite side of that, non US foreign countries have to pay a LOT more for imports. So they won’t be buying much from us. And possibly start cranking up their OWN production to glean lower costs by making there own.
On top of all that the USD and Chinese Yuan are very pegged. So to me it looks like the USA and China were A, and everybody else was B, and the whole ball of intermingled CRAP is getting sick. Hopefully it will die soon. I’m optimistic for the future if it happens.
The father of our country left instruction sheets behind, “Avoid Foreign Entanglements” Same as on your block. Each family and house is independent and self reliant.