💸💵What is an eurodollar?
➡️The mystery begins
The euro is NOT what you think.
It is our hidden monetary system, lurking in the shadows.
Think of the euro as a black hole, hidden but profoundly affecting everything around it.
The government does not have a monopoly on money; the euro is completely out of the Fed's reach.
➡️The urgent question
What is the origin of the euro? No one is sure!
In the late 1950s, European banks began transacting in American securities, creating a network outside the United States.
➡️ The birth of euros
A report from the Federal Reserve in 1960 reveals the emergence of euros as European banks sought dollar deposits for investments.
Euros are not real dollars; they are a network of claims and transactions.
➡️ The global money network
Euros allow banks around the world to transact efficiently, linking monetary resources to the needs of all continents.
➡️ The ledger money system
Euros are not physical dollars; they are ledger claims on the United States, a virtual currency.
Banks create claims and then use them to intermediate monetary needs worldwide.
➡️A new era of prosperity
Euros have become the lifeblood of a globalizing economy, facilitating trade and investment on an unprecedented scale.
This system has brought about unprecedented global prosperity.
➡️Unintended consequences
The euro has malfunctioned since 2007, and the world risks undoing decades of this progress.
Competing arrangements cannot replicate what euros have done so well - widely available and acceptable money.
➡️The ongoing challenge
To replace euros, something must replicate its capabilities, a tremendous challenge.