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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: E_K_S who wrote (13506)5/24/2025 1:25:24 AM
From: elmatador1 Recommendation

Recommended By
E_K_S

   of 13775
 
Washington to crack Fortress Europe: the Eurodollar market and the credit mechanisms outside the Federal Reserve’s jurisdiction.

the ECB inadvertently exposed the asymmetrical power structure between Europe and the United States?
In a crisis, the ECB might be forced to go cap-in-hand to the Fed’s Discount Window for dollar loans.

No more dollar swaps.

as of Monday, it is clear: the United States is preparing to wield the dollar as an even sharper weapon. Apparently, the Trump administration—together with the Federal Reserve—has frozen existing dollar swap lines with the Eurozone.

BREXIT partially reverted

With the end of the LIBOR contract—a former global benchmark for short-term interbank loans—on June 30, 2023, and the introduction of the U.S. alternative SOFR (Secured Overnight Financing Rate), the United States has fully seized control over dollar loan pricing.

While LIBOR had been dominated by European banks and subject to interest-rate manipulation, SOFR is based on actual secured repo transactions in the U.S. market—largely immune to manipulation.

Under this new structure, dollar credit becomes more expensive—bad news for Europeans long accustomed to cheap dollar financing

https://www.zerohedge.com/markets/us-withdrawal-ecb-warns-dollar-shortage
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