Why Global Demand For Dollars (And Gold) Is Spiking | Jeff Snider Explains

What about multiple bilateral exange outside the dollar beteween the global south?

Let’s have another go.

It will be different this time.



Before the new liberal order (neoliberalism) there was an old liberal order.

We stepped onto an old path that still leads to the same place.

1920s/2000s – neoclassical economics, high inequality, high banker pay, low regulation, low taxes for the wealthy, robber barons (CEOs), reckless bankers, globalisation phase

1929/2008 – Wall Street crash

1930s/2010s – Global recession, currency wars, trade wars, austerity, rising nationalism and extremism

1940s – World war.

We forgot we had been down that path before.



Everything is progressing nicely and we are approaching the final destination.

This is what it's supposed to be like.

Right wing populist leaders are what we should be expecting at this stage and it keeps on getting worse.



I remember now, it was Keynesian capitalism that won the battle of ideas against Russian Communism.

These liberal phases never end well.

It sounds so good, but ends so badly.

WW3 next stop.



We thought it would be different this time, but it wasn’t.

Rolling neoclassical economics out globally was just what we needed to work out why things go so badly wrong with neoclassical economics.



What is neoliberalism?

They formed the Mont Pelerin Society in 1947 to produce a new liberalism (neoliberalism) that learnt from past mistakes.

As time moved on, they gradually forgot about the old problems and produced something that was just cosmetically different.

As it was fundamentally the same, they could underpin it with the same economics, neoclassical economics, which had the same old problems it’s always had.



The assumption – The problems were in the ideology

The reality – The problems were in the economics.

This is why it’s panning out the same way.



Rolling neoclassical economics out globally has allowed it to reveal all its flaws and we can now see what it always was.

Neoclassical economics is a pseudo economics; it’s more about hiding the discoveries of the classical economists than telling you how an economy actually works.

At the lowest level it confuses money and wealth.



Banks create money, not wealth.

https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

You always get into trouble with banking when using neoclassical economics.

Global policymakers have been finding out the hard way.



In the 1930s, there was a widespread belief that capitalism had failed, and people looked to alternatives like fascism and communism.

They looked for some more high level thinking to replace the old, but this time round neoclassical economics has revealed all its flaws and we can see where the problems are.

We need firm foundations in economic reality for our high level thinking to build on.

This was awesome, thank you!

Calling Karl Marx a crazy man is a pretty ignorant thing to say. Concepts like value added were originated from Marx’ work. That’s where i stopped watching.

Wages reduce profits.

Therefore paying employees is contrary to running a business.

The inflation causing money printing is and has been the problem #endthefed

There is no monetary fix for asymmetric trade imbalances. You cannot simply "fix the money" while ignoring trade, the U.S. open capital account, or surplus economies that sell goods below cost through beggar-thy-neighbor policies. Inefficient globalization destroyed demand. John Maynard Keynes came closest to addressing this at the Bretton Woods Conference with the Bancor proposal, not because of the supranational currency itself, but because it imposed discipline on both persistent deficit nations and persistent surplus nations. It included penalties for excessive imbalances, along with constraints on currency manipulation and beggar-thy-neighbor trade policies.

What we are trapped in is a global Kalecki's Paradox. Any serious attempt to reduce debt, deficits, or the safety bid for Treasuries risks collapsing global demand in a system that has become dependent on perpetual credit expansion. Surplus nations and their export-led undervaluation strategies must be confronted before monetary distortions end. Until then, productive lending and monetary rebalancing remain structurally constrained.

This dynamic also helped destroy the first wave of globalization in the 1920s and 1930s. Persistent trade imbalances, competitive devaluations, and surplus hoarding transformed an economic crisis into a political, and eventually military, catastrophe. Low economic dynamism accelerates political radicalization, exactly as you point out, and in extreme cases the process does not stop at elections.

The Eurodollar ledger system was an ingenious workaround for a time, but it ultimately papered over the underlying contradictions instead of resolving them. Until surplus nation policies are brought back into balance, voluntarily or otherwise, we are mostly managing symptoms while political instability accelerates.

Financialization is the rehypothecation and leveraging of scarce dollar deposits created by a lack of productive lending opportunities in the real economy.

Deficit spending recycles deposits from institutional and private savers toward recipients who immediately spend them. For large parts of the economy decimated by inefficient globalization, that spending has become one of the few remaining sources of demand support.

Private credit bubbles follow a similar pattern. Low rates mean liquidity chases increasingly speculative outlets as productive investment opportunities evaporate.

The role large financial institutions have played in financing AI and other emerging sectors is likely larger than currently understood, and it remains part of the broader systemic concern.

There are no bond vigilantes, which is why low rates are not a sign of "easy money."

Increasingly, they are a symptom of liquidity shortages in the real economy.

Smart money remains concentrated in nominal value-preserving assets because markets sense these global imbalances are unlikely to unwind cleanly through deliberate policy coming out of Congress.

More likely, they rupture through benign neglect, political paralysis, and the gradual loss of systemic cohesion.

If nobody bought anymore treasuries notes or bonds it would force the United States to do a balanced budget. If you want to write the ship this needs to happen we have to go through the hard times

41:43 still willfully blind to the reality of decreasing energy returns on energy invested. There will be no return to the postwar, late 20th century prosperity because *it was only possible in an era of fossil fuels being cheap to extract and distribute, which is already gone and can never be recreated*.

Is it going into Vons perpetuating the United States problem. Which is the debts and the deficits parrot allowing us to keep doing what we're doing going further and further into debt and screwing our own citizens

#raise the rates

The reason government bonds represent safety is because:
1. Leverage throughout the system comes from US dollars. Financial problems mean deleveraging and dollar shortage.
2. The Federal Reserve responds to financial problems through lower rates (raising the value of government bonds) and QE (buying government bonds).
3. Government bonds in general are given special status within the banking system that other assets don’t have, allowing banks to lever up these positions with high limits and sometimes no limits, and they are always available for repo with minimal haircuts.

This system isn't capitslistic, though, lol!
We live in an oligarchy

Muy de acuerdo con el análisis y de hecho hablo bastante de esto en mi video
https://youtu.be/xJ04l6FBYCU?si=jRwk51O_qcl7FwBk

Xrp 🤷‍♂️

Marx wasn’t crazy

Jeff explains complex things so the normal person can understand them, better than anbody else.

I watched Jeff before the beard and he was an upstate NY guy like me 😂

Amazing interview

When rates are going to go down, go down by a lot, and stay there , Jeff?

Basically get out of the dollar buy metals

The main reason WHY we are in this situation which NO ONE seems to understand. PROPERTY TAXES! Property taxes are NOT based on median income but on FRAUDULENT assessment values created by the CAD (central appraisal districts) throughout the United States. Fraudulent assessment values with the bonds being issued on these values. Creating a destruction of wealth within all communities. This problem is now making its way through the Denton Texas Supreme Court PROVING fraud within this community but copied throughout all US districts. If real estate is a major store of wealth which it is then this is a main reason for the destroy of wealth.
Mitch Vexler of mockingbird properties has brought this fraud to the attention of the public
I suggest you have him on your show

It’s wild how many people are still chasing ETH and B

If you missed out on Bitcoin, $SPAX70P is your second chance. Don't sleep…

$SPAX70P is the play🎉

Presale phase and already smashing ATHs. SPAX70P is in a league of its own 📊

Jeff has a very brilliant mind .👏

And to add insult to injury, over the next 10 years job losses to AI will foment uprisings and revolutions everywhere with unworkable legacy social and economic systems not providing what people need to sustain themselves. Half the world's population are slated to die off and the AI accelerationists say, "good, who needs useless eaters?".

They solved Triffin's dilemma by destroying the US manufacturing base. I like Jeff but he is out there sometimes...
Absolutely no homeowners were bailed out.
I love physical gold and silver. I appreciate the need for crypto also. I feel it is best to stick with the largest (bitcoin, ethereum, maybe a little solana or xrp) and some stable coins like tether gold. The petro-dollar is getting vaporized before our eyes and everyone is going to need an alternative soon.
Jeff's dismissal of BRICS is very narrow minded. I understand that their alliance is loose and somewhat dysfunctional but dysfunctional best describes the west as a whole today. China has risen to be the largest economy in the world in the blink of an eye and if you are dismissive of that you have no business talking.

Jeff you are a loser grifter.

Vote Libertarian. Euro dollars are on the rails of USD which is absolute trash. To compare Bitcoin to the euro dollar is a fallacy and clearly Jeff hates Bitcoin so much that he can't admit what the real difference is 🤡🤡🤡

Socialism (China) serves the majority while rentier capialism (US) serves the oligarchy.