This is a special edition of Macrovoises with hedge fund manager Eric Townsend.

The premier financial podcast targeting professional finance, high net worth individuals, family

offices, and other sophisticated investors.

Now for this special edition of Macrovoises, here's hedge fund manager Eric Townsend.

Macrovoises All Stars episode 72 was recorded on October 21st, 2019.

I'm Eric Townsend.

All-star Jeff Snyder is back Mr. Eurodollar joins us again.

Jeff, the Fed is buying US government debt, thereby quantitatively adding to the size of their balance sheet.

But we're being asked to believe that it's not quantitative easing.

Okay, whatever.

Ever since the middle of September, though, the central bank has been doing something.

There have been overnight repo operations, term repos, and now this so-called small scale asset purchase program,

which because it's small scale, that's only 60 billion with a B dollars per month,

we're asked to believe that it's not QE somehow.

And that follows another adjustment to I.O.E.R.

and what was, I believe, the first adjustment to the reverse repo rate floor.

There's a lot of moving pieces here, a lot going on, which already proposes more than your regular garden variety of fine tuning.

Oh, and the repo rate just jumped again last week, pulling Fed funds up with it.

So Jeff, I'm looking over your slides and I can already tell that we're about to get another lesson in modern money

in true Eurodollar University style.

I'm hoping that will begin to piece together what's going on here, because frankly, a lot of us are confused about it,

and there don't seem to be many good answers or solutions for that matter.

...