Hopefully Rebel capitalists hope you're well. I'm here with my good buddy Andreas Steno Larson and it's probably about 3 o'clock in the morning where he is.

So I really appreciate his time coming on and going over this BIS report that everyone has been talking about and I don't want to put words in his mouth but I think

Andreas would say that this is more BS than BIS.

So let's go through this, buddy.

Can you kind of give me a short Reader's Digest version of what this report is all about and maybe why you think it's a nothing burger and then maybe we'll go over it slightly so the audience can understand your view with some charts that I've got.

Yeah, I mean we obviously noticed that report from Bank of International Settlements as well,

my research company this week.

It made the rounds on social media, it made the rounds in mainstream media even as a consequence of this

very firm headline that we have almost a hundred trillion in hidden dollar bet, right?

What I think about this is basically that I don't consider it hidden in the sense that we actually know what it is

But it is hidden given that it's still a bit off-balance sheets? So in that sense I agree, but we know what's underlying this

headline. It is essentially based on my local pension fund here in Europe or my local export company here in Europe

wanting to have a hedge against dollar receivables. So what do I mean by that? Well a pension fund in

Germany for example they they hold a lot of US equities, they hold a lot of US

bonds and to protect themselves against a move in the US dollar versus the euro

They essentially want an offsetting position in the dollar market against this dollar asset holding.

So what they want is basically to borrow US dollars in FX swaps against holding equities in US dollars.

So they have a position to offset their long position.

Exactly.

And the way they do that is via very short term FX swaps. so usually they run a month or three months and then they

roll this FX swap on a running basis because they want the flexibility to be able to

close down this offsetting position if they need to sell the dollar equity or if the dollar

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