This interview podcast delves into the complexities of the eurodollar market. The discussion begins with a recap of a previous three-hour podcast episode on the topic's history, then transitions to a contemporary analysis of its size, centrality within the US dollar system, and inherent instability. The guest expert highlights the ambiguity surrounding the US government's backing of this $13 trillion market, comparing it to the uninsured deposits crisis of the 1930s. Potential regulatory solutions are explored, including the possibility of an international agreement mandating full-reserve banking for global dollars, thereby stabilizing the system. Finally, the conversation touches upon the potential of stablecoins like Tether to become the "new eurodollar," emphasizing the differences in their current usage and the implications of increased regulation.
