/biz/ - Business & Finance

>>58309186
>usually when people describe currency debasement like printing new bills
yes
>or increasing central bank reserves without an asset exchange
they never do that, they always conjure money to purchase bonds/ securities
>its just not usually a thing you would call commercial banks doing even if they create most of the circulating money individuals use
but that's where most of the debasement happens
the FED fixes rates to a point where money creation becomes too easy to repay, and if rates spike they can conjure the money to buy those bonds and avoid spikes
THAT'S the problem with central banking
and what this guy >>58307617 doesn't get, it's that if the new SLR rule allows them to just exclude treasuries from the reserve ratio, it essentially means they have infinite credit to purchase treasuries
the rule change is to IGNORE it from the balance sheet altogether
https://twitter.com/heresyfinancial/status/1768066871344210020

the government then can do QE through any US bank, not just the FED