We’ve all heard Jeff Snider and Emil talk endlessly about the Eurodollar system and how it is the backbone of the global dollar funding market. Jeff goes to great lengths to explain to us normal people what this system is and how this system functions. Now then, apparently there is a repo market for reserves (that never leave the banking system) and a Eurodollar market for dollars outside the US (that never enter the US).

After trying really, really hard to understand this stuff, I’ve come to one conclusion: it’s bogus. These are not real things, these reserves and Eurodollars. Have you ever seen a Eurodollar? Has your bank ever deposited reserves into your checking account? Have you, in the course of your normal life, EVER come across a reserve or a Eurodollar? No. Me neither…

I’m telling you, these reserves that needed to be replenished after the GFC or else the banking system would collapse, and these Eurodollars that are apparently in so much demand that the dollar is soaring and crushing other economies- they are not real. These are some abstraction of real units of account. These are some video games that global bankers play because they have convinced themselves these games are real things.

The bankers are looking at shadows on the wall in Plato’s cave and thinking the shadows are real things. These clowns in NYC and London have been doing this for 2-3 generations. They’ve lost the ability to distinguish the game from reality.

Read every multinational corporation’s 10k. There is not one mention of a Eurodollar anywhere. No oil exporter has ever accepted a Eurodollar for crude. Reserves aren’t real because they are created at will and only reside on bank balance sheets. There are not real things. These are beliefs. These things derive their existence from the beliefs of bankers (who are mostly sociopaths today).

No producer outside the US calls the units in their account Eurodollars- the units are simply called “USDs”. So why are we in the West subjected to this propaganda of the Eurodollar?

I’m not sure, but I expect we will soon find out when the Fed breaks something…