Ladies and gentlemen, good morning. Welcome to Grant's Interest Rate Observer Radio. It is a pleasure to be with you, as we are once a week. Before we get into today's topics, which would include such timely subjects as interest rates, a favorite of ours. We're talking about interest rates.

We're talking about hedge funds and talk about what is going on in the nation's grocery stores.

But first, a word from your sponsor, who is actually me. I'm Jim Grant, and I would like to invite

you to visit our website. We on it, we have, it's kind of a shop window.

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let us get down to business. Good morning to you. Good morning. Evan is the, if you please,

the new deputy editor of grants, and he knows stuff. Among other things, Evan has been watching

an astonishing buildup in the Eurodollar Futures Market, a recondite thing that he will now

explain to this. Evan, what does all this mean?

The Eurodollar futures is a way of betting on U.S. interest rates. And right now, the net speculators

have a position, a record net short of 3 million contracts. And if you can actually see this

graph that's sitting in front of us, it looks like a parabola going down. People have put record bets that rates are going

to rise and everyone is in the same trade at this point. So the price of these futures contracts

will fall, which is the mirror image of the rates rising. Exactly. And these are short-dated

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