Europeans are belatedly cottoning on to the stablecoin dollarization threat
In a blog post this week, ECB official Jurgen Schaaf argued that widespread adoption of US dollar-denominated stablecoins in the euro area could erode the European Central Bank’s monetary policy control, drawing parallels to historical dollarization trends in economies like Ecuador and El Salvador, where foreign currency use reduced local central bank influence. “Such dynamics […]
In the Blind Spot: War and Peace
SNEAK PEEK — Developments in Ukraine and Europe suggest the Russo-Ukraine war, despite abundant signals pointing to the conflict’s long-term continuation, may be on the verge of a pause. — A very Trumpian plan to end the Caucasus conflict is all but confirmed, pending Armenian approval. Good morning, subscribers!It was a pleasure to meet so many […]
A de-Russified Caucasus? It’s too early to tell
SNEAK PEEK — The Armenia-Azerbaijan conflict may get defanged, but the consequent rumors of a de-Russified Caucasus may be jumping the gun. Hello, subscribers! Dario here. As you may have noticed, our newsletter from last week was sent again this Friday by accident, for which we blame our newsletter management service MailChimp, which gives us no […]
Erratum, erratum! COWS ARE NOT DEFENDING THEIR FLATULENCE
What-a-mistake to makeh! Dario has brought to my attention that this week’s edition of the Blind Spot accidentally failed to delete the Blind Spot’s equivalent of Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam… which currently populates our main […]
In the Blind Spot: It’s not industrial policy, it’s rebalancing
SNEAK PEEK — Why the Big Beautiful Bill has more in common with Poland’s stabilization programs of the 1980s than Chinese industrial policy. — CBDCs are so yesterday! And even China is turning to stablecoins. — How Robinhood opened a can of worms regarding equity ownership. Happy Sunday! There’s a lot going on […]
In the Blind Spot: The grand geopolitical bargain being laid out over a minefield
SNEAK PEEK — The long-awaited grand geopolitical bargain for peace is finally showing itself in public. But can it hold? — Spain’s Pedro Sanchez throws a wrench in the NATO works. But is it real opposition or a domestic distraction? Hello, subscribers! Dario here. Finding myself juggling this newsletter and organizing our Berlin event means our […]
In the Blind Spot: The great recalibration
SNEAK PEEK — ECB’s Christine Lagarde is not a fan of stablecoins, and thinks a light-touch capital control for the eurozone might be needed to prevent runs. — The importance of intraday liquidity in maintaining the health of the financial system finally gets its day in the sun, thanks to the BIS. — Worldline […]
In the Blind Spot: Shifty finance
SNEAK PEEK — We do a deep dive on the case against Bulgaria’s upcoming euro adoption and the Atlanticist forces backing it. — The newly passed GENIUS Act disrupts current creditor status by introducing a new super-senior tranche. — Our short, sharp review of Adam Curtis’ Shifty Greetings from heatwave Britain. Sorry for the late send out. It’s been […]
In the Blind Spot: The great re-pegging
SNEAK PEEK . — There’s a radical civil obidience movement shaping up in Britain and threatening to fix things without planning permits. — We take a closer look at what drives Kevin Warsh, one of the names being floated as next Fed governor. — Why for Frankfurt it’s euroization or bust. — Related: Why […]
In the Blind Spot: De-financialization or bust
SNEAK PEEK — Financialization was a policy choice in America and the U.K. just as much as industrial policy was a choice in China. — Why global trade and economic shifts risk reigniting the ‘Zaitech’ phenomenon. — The Elon vs Trump spat is best understood through the lens of neurodivergent psychology. Greetings subscribers! I’m […]