The Most Important Market In The World (That You’ve Never Heard Of)
This is the first part of a series of articles (I don’t know how many, I’m not done yet) designed to explain what is easily THE most important, albeit poorly understood (even by professionals) market on this ball of dirt.
Eurodollars: What Are They?
To best explain what Eurodollars are we start with the English language.
You see, while English belongs to the Brits it is at the same time the undisputed, undefeated heavyweight champion of the world’s languages. You can be in Marrakesh, Ulan Bator, or Shanghai, and buy yourself a cold beer, swear at a taxi driver, and discuss the weather with a lady called Mei at the train station – all without changing language once.
Sure, you may have to strain your ears to understand Singlish in Singapore, and Texans have their own version of most everything, so why not English?
Australians always sound like they’ve had too much to drink (which is entirely possible), and at the speed that Kiwis talk it’s no wonder they were exiled to live in a land with more cattle than humans. Hell, even in the birthplace of the English language you’d be found scrunching your face, straining your ears, and begging for sign language instead when conversing with a Geordie. And heaven forbid you find yourself in a pub full of drunken Glaswegians.
Still, English is the grease in the cogs of global communications and so it is with dollars in global finance.
Dollar deposits in their birthplace (US) are well, just dollars. Dollar deposits outside of the US are like Singlish or Ingrish and the dozens of variations across the globe. It’s the same language just in a different place. Just as dollar deposits outside of the US are still dollars.
This post was published at Zero Hedge on Dec 4, 2016.