(O'Malley, 2015, p. 36).54 54. (Norman, 2007, p. 22).
55 55. A ‘repo’ is a repurchase agreement. This is a form of short-term collateralised borrowing. The borrower sells securities (usually government or other highly rated bonds) to the lender in return for short-term funds and, by agreement between the two parties, buys them back at a future date, usually at a higher price to reflect interest costs.
56 56. (Phillips, 2019).
57 57. SWIFT data, which can be accessed at: https://www.swift.com/swift-resource/249851/download.
58 58. Based on BIS and SIFMA figures, which can respectively be accessed at: https://stats.bis.org/statx/toc/SEC.html and https://www.sifma.org/wp-content/uploads/2020/09/US-Fact-Book-2020-SIFMA.pdf.
59 59. The Guam Doctrine is also known as the Nixon Doctrine. By the time that Nixon came to office in 1969, the US was financially and militarily overstretched by the Cold War and the Vietnam War. Recognising that the US was realistically unable to maintain all the commitments it had previously made, President Nixon first articulated a retrenchment in US foreign commitments at a press conference in Guam on 25 July 1969, whereby he stated that henceforth the US ‘would assist in the defence and developments of allies and friends’ but would not ‘undertake all the defence of the free nations of the world’. Implicitly, this was an abandonment of the Southeast Asian Treaty Organisation (SEATO).
60 60. (Klein & Pettis, 2020, pp. 192–193).
61 61. These were known as ‘Roosa bonds’, named after Treasury official Robert Roosa.
62 62. (Steil, 2013, p. 495).
63 63. (Reid-Henry, 2019, p. 58).
64 64. Emphasis added.
65 65. (Thorp, 2017, p. 202).
66 66. For the story of the rise and fall of LTCM, see (Lowenstein, 2011).
67 67. These currencies were: British pounds, Canadian dollars, Deutschmarks, Japanese yen, Mexican pesos and Swiss francs.
68 68. (Yergin, 1991, pp. 597–607).
69 69. (Mouawad, 2008).
70 70. BIS data as of 31 December 2020, which can be accessed at: https://stats.bis.org.
71 71. World Federation of Exchanges data as of 31 December 2020, which can be accessed at: https://statistics.world-exchanges.org.
72 72. BIS data as of 31 December 2020, which can be accessed at: https://stats.bis.org.
73 73. This is the risk of default by the opposite party to a trade. Clearing houses act as a central counterparty to all traders within a market and collect margin funds from all participants in order to insure against the default of any one party to a trade.
74 74. US Treasury Department data, which can be accessed at: www.publicdebt.treas.gov.
75 75. Based on US Treasury Department data for Treasury securities held by the public, which can be accessed at: https://ticdata.treasury.gov/Publish/mfh.txt. This figure may misstate the true proportion of US Treasury securities held by foreigners, since US securities held in overseas custody accounts may not be attributed to the actual owners.
76 76. (Garbade, 2012, p. 1).
77 77. (Garbade, 2012, p. 44).
78 78. (Davidson, 2010, p. 664).
79 79. US Treasury Department data, which can be accessed at: https://fiscaldata.treasury.gov/datasets/.
80 80. (Congressional Budget Office, 2010).
81 81. (Yergin, 1991, p. 616).
82 82. (Yergin, 1991, p. 409).
83 83. Based on US Treasury Department data, which can be accessed at: https://ticdata.treasury.gov/Publish/mfhhis01.txt and https://fiscaldata.treasury.gov/datasets/historical-debt-outstanding/historical-debt-outstanding.
84 84. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203), effective since 21 July 2010.
85 85. Bloomberg data.
86 86. (Richter, 1989).
