Significant in helpful way:
See here entire US banking system added about $500B loans and lease Assets in over an entire year:
While Treasury added $550B of reserve assets in just a few weeks starting February 20th this year reducing TGA from $850B to $300B at the morons “debt ceiling!” … causing a corresponding precipitous drop in all other financial asset prices as Depositories don’t have the regulatory capital to comply with leverage regulations in these situations where the second rate Art degree monetarist morons think they literally “inject money!” like this:
Policy discussion around the SLR reform has previously addressed only these reserve assets at the Depositories but lately the discussions have expanded to also include USTs …. 🤔
This could be related to the advent of USD stablecoins and the threat these coins pose to traditional Depository businesses… we have to see how this part works out..
The important part is getting the reserve asset exemption … this will eliminate the effect of what has been the most destabilizing Art degree monetarist moron monetary policies in our lifetimes..
3 comments:
Bessent will decide to "rigorously study it more."
Bank lobby might need it to compete with USD stablecoins for settlement services.. there is this thing the GENIUS act (probably better termed the moron act…) they are debating now about the coins, cryptocurrency,etc.,, the stablecoins don’t have to maintain regulatory capital like the depositories do the coins just get USD from buyers of their coins and then invest the proceeds (ie other peoples munnie) in USTs and then the coin issuers just keep all the UST interest for themselves.., while banks typically have to pay competitive deposit interest to account holders.,,
Trump has the USD1 so he might be incentivized to keep current coin regulation as is… as his USD1 group is currently just keeping all the UST interest for themselves with no interest or dividends paid to coin holders .,
Much in flux this summer.,,
Mike he’s unit with Witkoffs son:
https://www.thetimes.com/us/american-politics/article/zach-witkoff-steve-trump-crypto-nds9zjj9t
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