Dollar Hegemony in the Land of Oz - Part 6

Summary

• An examination of Dollar Hegemony.
• Factors that have driven the dollar to recent multi year highs.
• Contributing factors that make the U.S. dollar a global "managed" currency.

In Parts 1, 2, 3 & 4 of this series we examined the global impacts of: recent CB (central bank) responses to systemic economic distress; CB econometric utilisation and the media economic narrative; the U.S. Dollar as a global fiat currency; and the perception of the CB structure as a public good.

In Part 5 we examined factors contributing to the dollar's rise: the yen carry trade and a culmination of wrong way market bets; short U.S. dollar; long HY and EM debt; long commodities; long energy; short Eurodollar; short rising interest rates.

In Part 6, we examine additional factors in the dollars recent multi year highs:

• Basel III Liquidity Coverage Ratio
• Collateral Calls of Off Balance Sheet Obligations
• Energy, Commodities, BRIC & Emerging Markets
• Forex Reserves, Currency Geography
• Offshore Dollar Banking , Custody Bank Holdings
• Shadow Banking

and discuss to what end's does dollar hegemony serve.

This missive was published as an exclusive to Seeking Alpha.  To access the entire text for FREE on Seeking Alpha, please click here.  The Nattering One does not receive remuneration if you register, only satisfaction.

There is no cost involved and it has been our experience that if you exert control (by unchecking a box of two) over your communications settings in your Seeking Alpha profile, your email inbox will not be polluted with one bit of Spam (not even the cured pork shoulder variety. Tasty even.)

As we are now a "contributor" at Seeking Alpha, our published articles, instablog and comments can be found here.  Please continue to follow The Nattering Naybob here and at Seeking Alpha. We thank you for your support.