Fed conspiracy to kill Eurodollar banks?

We keep hearing this conjecture. Let's examine.

Dear readers,

When in Austin recently visiting with bitcoiners, we once again came across an argument that we’ve already written about this year. It goes: the Fed is raising rates not to fight inflation, but as a conspiracy to take back the power of dollar creation away from European banks and into the hands of American onshore banks. Remarkably, the institutional investors who are proponents of this theory are not only hesitant but reluctant to come on our channel for an interview discussion because of the fear of being labeled a conspiracy theorist. This dynamic led us to examine this argument a little further, as there are many who deeply believe that US banks are on the verge of handing European banks a striking defeat. We don’t see it as so.

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Eurodollar creation upsets the Fed

Deeper histories of the Eurodollar’s origin capture our imagination, but let’s simplify it as much as possible for the sake of argument. Once upon a time, the US dollar was a United States currency, payable in gold. As the American empire grew, people both wanted and needed dollars outside the United States. When those people no longer demanded the ability to exchange that paper for physical gold, long before Nixon’s gold window closure in 1971, a truly “offshore” dollar system took root.