offshore

Real Liquidity Cuts Across Many Boundaries; So Does The Lack of It

By |2019-08-02T12:59:58-04:00August 2nd, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Things that happen in one place happen in every place. That’s been the second hardest thing to get people to realize. The first is that central banks are not central. And the reason they aren’t is because of this other factor. It truly is a global system and it’s made that way by its very [...]

Ticked About TIC: The Accidental Discovery of Perhaps The Big Bottleneck

By |2019-07-17T15:30:38-04:00July 17th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

From October 2000 to July 2001, the Treasury Department conducted a special survey of users of its Treasury International Capital (TIC) data. Nearly two decades ago, it had become apparent (to some) just how important international dollar flows were to the overall economic and financial landscape. And not just those of the United States. TIC [...]

What Has Markets Spooked? Probably Something To Do With That Huge Offshore Dollar Hole

By |2019-07-12T18:32:36-04:00July 12th, 2019|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Like a shark smelling blood in the water, I don’t care that the blood is in the water from leaking out of what will be a dead horse, if it isn’t deceased already. I pretty much intend to beat on it one way or another. The issue isn’t just fed funds, it’s why anyone cares [...]

Embroiled by Fed Funds, FRBNY 143 Months After BNP Finally Says ‘Offshore’

By |2019-07-09T16:07:38-04:00July 9th, 2019|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

It was a poignant moment that has gone totally unappreciated. Lost in the noise about subprime mortgages, on August 9, 2007, what actually happened that day represented perhaps the best example of how things worked. Or suddenly didn’t. On the occasion of the 10th anniversary, I recounted the tale of BNP Paribas. You’ve heard of [...]