What Are Eurodollars?

In this video we discuss the Eurodollar, what it is and why it's especially important today. This video includes:

1) The origin of the Eurodollar
2) How Eurodollars are really just offshore Dollar deposits
3) Where Eurodollars come from
4) Why this is uniquely important today

00:00 Introduction
00:17 "Euro" "Dollars" aren't Eurodollars
00:39 The origin of Eurodollars
01:00 Where Eurodollars come from
02:16 Why does the Eurodollar market matter?

Useful links:

1) Is the Dollar Losing Reserve Currency Status?

2) Will the Surging Dollar Crash the US Economy?

3) THE EURO-DOLLAR MARKET: AN INTERPRETATION

4) The Global Domain of the Dollar: Eight Questions

Cullen Roche is the CIO of Discipline Funds, an asset management and financial advisory firm. He has managed billions of dollars in his career and helped thousands of people achieve financial independence. He is the author of the best-selling book "Pragmatic Capitalism" as well as the most widely read macroeconomic paper on the SSRN database "Understanding the Modern Monetary System".

Disclaimer - This is for educational purposes only and is not financial advice.

#threeminutemacro #cullenroche #eurodollar

[disciplinefunds]

Thanks for watching everyone. If you have questions or topics you want to discuss feel free to use the comments here. Thanks!

[adriannieswiec]

Idea for a new Video:
All about SWAP lines

Best regards from Vienna

[disciplinefunds]

00:00 Introduction
00:17 "Euro" "Dollars" aren't Eurodollars
00:39 The origin of Eurodollars
01:00 Where Eurodollars come from
02:16 Why does the Eurodollar market matter?

[woodcoast]

Hi Three Minute Macro

At 2:05 is the same as the description in the "money multiplier myth" but applied to Eurodollars. Of course, I know you do not subscribe to that myth when discussing a bank in the USA. The pertinent point is Banks inside the USA do not multiply up a holding of dollar reserves to make dollar denominated liabilities and similarly banks outside of the USA do not multiply up a holding of dollar reserves to make dollar denominated liabilities. Milton Friedman wrote a paper on it in 1971 The Euro Dollar Market Some First Principles. It is on Chicago Booth

[brosephus_rex]

I thought that Bitcoin and monkey JPEGs were going to replace the petrodollar any day now.

[benitoproto]

I would like to deepen the concept. Any good reading you can recommend? Thanks!

[FlyingFlaneur]

So, 12.7 trillion in dollar debt created by foreign banks outside of US regulation? With the dollar appreciating, what happens if these borrowers can't pay?