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0 sats \ 7 replies \ @justin_shocknet 1 Mar \ on: Europe's Struggle For Russian Reparations And Collaterals Politics_And_Law
This covers maybe 6 months of current Eurozone deficits, assuming no increases in defense or energy spending without which they are a defacto client state of Russia... may as well be nothing...
.. hard to picture a scenario at this point where the EU is anything but dead.
Put these assets on the ECBs balance sheet and lever it by 20x
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Lever it with what? there's no difference between that and printing it out of thin air... that might actually be worse because if you lever it and spend it less than perfectly you've magnified the problem by 20x
Maybe you use it to offset a bleed in foreign reserves to import energy from the US, and hope to get a return multiple on that energy by investing in drilling for your own energy... I have no idea how efficient euro energy companies are with capex but I assume it would take a miracle given how poorly they do just about everything else.
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Credit needs a colateral. That's not how fiat works
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That may be how that particular central bank aims to work, but fiat is literally fiat, collateral is not a pre-requisite... you're making shit up with that out of turn, they could simply use seigniorage if it were purely a domestic concern.
The Russian assets "collateral" is only functional in as far as it provides an ability to import things they need without a complete currency collapse, and it's not much at all.
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Even if the cb monetizes public debt they need to buy the bonds (colateral) first. Please study some economics
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Wrong, and it has nothing to do with economics, clearly you're too ignorant on this subject to distinguish from bank charters and economic theory.
If you Europoors need money to spend at home, you can just print money to do it. It doesn't need to be lended into existence first with collateral, you can literally just mint new shitcoins out nothing and put them on the banks balance sheet and call that collateral if you want (reserves). The inflation at home would be seigniorage if you went this route.
The Russian assets are only useful for propping up your otherwise dead currency for a few more months while you import things you need from places that aren't as retarded. Suggesting otherwise is brainwashed eurocuck media talk.
Since you have a child's mind I'll ELI5:
Your monopoly money is worthless because you have no economy, so you need the Russian's money for foreign exchange.