Erik Townsend and Aaron Chan welcome Jeffrey Snider to MacroVoices. Erik and Jeffrey discuss:
- Rich equity valuations despite an on-going earnings recession
- Off-track corporate cash flows and profits as evidence of a weakening economic environment
- The mainstream misconception and myth that the Fed provides liquidity thereby levitating equity valuations
- The chronic and acute dollar shortage as evidenced by the decaying post-2007 global eurodollar system
- Global central banks resorting to sellng Treasuries as a means to filling dollar funding gaps
- Milton Friedman's Interest Rate Fallacy and how long-run low interest rates demonstrate tightness of money supply
- How the tight-dollar environment manifests itself in the increasingly disorderly global repo market
- The complete disconnect between inferred interest rate bearishness in eurodollar futures and QE as liquidity
- TED-spread volatility and other wholesale financial measures suggesting central banks might be losing control
- The Fed's inadequate response to the structural contraction in the global eurodollar system
- Wholesale eurodollar system not tracking with prior exponential growth and demonstrating permanent monetary disruption
- How the preponderance of evidence necessitates a systemic reset
- Why central bankers lack the answers by being married to an incongruent monetary framework
- The potentially galvanizing catalyst between nations in lieu of a serious crisis
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Mr. Snider is Chief Investment Strategist and Head of Global Research at Alhambra Investment Partners. Through detailed and comprehensive investigation of the global monetary and banking system, he was one of the few analysts to sound the alarm during the run-up to the panic of 2008 and then to predict the rebound in 2009. His current commentary focuses on the global implications of the ongoing monetary deconstruction including the failure of Federal Reserve and central bank policy. Mr. Snider is published nationally at RealClearMarkets, NewsMax, David Stockman's Contra Corner, and other places.