In light of the flood of public debt and the anticipated issuance of new government bonds in essentially saturated markets, preparations are underway to establish the legal framework for banks to absorb the new debts. The International Swaps and Derivatives Association (ISDA) is urging US regulators to once again exempt US Treasuries from the Supplementary Leverage Ratio (SLR). Initially implemented as an emergency liquidity measure in April 2020, officially in May 2020, this provision was later phased out in March 2021.
The fiat clown world will drown the globe in debt!
pull down to refresh
31 sats \ 1 reply \ @siggy47 28 Mar
This is gigantic news. Yesterday I posted an analysis by Lavish #482595
where he explains the situation in an easy to understand way.
reply
76 sats \ 0 replies \ @TomK OP 28 Mar
we will need gigantic sponges to absorb the new debt and roll over the old. that means government bonds will be squeezed into all balance sheets and all available deposits from now on, whatever the cost. i had already written that the propaganda machine here in europe is running high, that individual customers should buy government bonds. and they are doing it
reply