This is interesting depending on how they do it... if the EU issues securities and then retains the EUR balances in accounts directly at the NCBs instead of Depositories it will create a reduction of Reserve Assets and Deposit Liabilities at the Depositories... would be similar in effect to the US Treasury increasing its account at the Fed by > $1T last year.... have to see how they do it.. if they just keep the EUR proceeds from the offerings at the depositories then status quo...
@timfprice @MacleodFinance @notayesmansecon @ajcdeane @EuroGuido @sitkaclaudio
— Malcolm Parker (@mbiranek) April 14, 2021
EU Lays Out $1 Trillion Debt Plan to Challenge Treasuries https://t.co/BD9j9lMWWU
4 comments:
More welfare proportional to account balance for the banks and the rich.
It's no wonder that "Investors are keen."
lol they are talking about negative rates on when issued...
how is it "welfare!" to charge people to take their munnie?
Even at whatever rate if they hold EUR proceeds at the NCBs directly short term effect will be a reserve reduction at their Depositories...
they are talking about negative rates on when issued... Franko
In that case, then they AREN'T welfare proportional to account balance and I was wrong. I sit corrected.
But that raises another point and that is that individual EZ citizens should be protected from negative interest to a reasonable balance limit as a natural right of citizens to use fiat FOR FREE up to reasonable limits.
maybe on Mars but meanwhile here on planet Earth....
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