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In this episode of Bitcoin Magazine’s “Fed Watch” podcast, hosts Christian Keroles and Ansel Lindner welcomed back to the show Jeff Snider, head of global research at Alhambra Partners. Snider writes a great blog at Alhambra, is syndicated elsewhere and creates a very thought-provoking podcast with Emil Kalinowski called “Making Sense: Eurodollar University.”
Snider is the foremost expert on the eurodollar system, the large global financial system based around the off-shore dollar. The history and data he marshals to back his analysis of the monetary system is second to none. There is no other guest with his extensive and recallable knowledge of the Federal Reserve, so, he is the perfect guest for “Fed Watch.”
That being said, in this episode we started off by getting an update on the world of high-powered monetary plumbing, specifically we wanted to know if we are in a reflationary cycle. Other pundits out there in macro will use terms like “K-shaped” or “L-shaped recovery” when speaking about a reflationary cycle. Some things look K-shaped, meaning certain populations have recovered, while remaining very bad for others, namely the poorest among us. An L-shaped recovery means there has been no discernible bounce in the recovery at all. Snider navigates through these distinctions and gives a great breakdown of the situation out there.
Next, we moved right into a discussion on central bank digital currencies (CBDCs). These are new forms of digital currency provided by the central domestic regulator of each currency, the central bank. Snider has been covering these developments more in his content recently. It is a large topic and here we only scratched the surface. One aspect I bring up specifically is the fact that the dollar has a vibrant private issuance of a stablecoin digital dollar, while other currencies cannot claim the same. It is those other central banks, particularly the ECB and…