That effectively makes it so banks don't have to "buy" treasuries, for all intents and purposes they're cash reserves to banks, which monetizes the debt without a big fed brrrr shocking the market.
What matters in credit is collateral, treasuries are the collateral that matters, but that also forces the government to over-spend... enter Bitcoin as collateral to re-collateralize the banking system.... no more need for fed discretion.
Yea and for all the pearl clutches its really just a return to how things used to be
The SLR reform goes into effect April 1, conveniently when these bigger refund checks start hitting the wires. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20251125b.htm
That effectively makes it so banks don't have to "buy" treasuries, for all intents and purposes they're cash reserves to banks, which monetizes the debt without a big fed brrrr shocking the market.
What matters in credit is collateral, treasuries are the collateral that matters, but that also forces the government to over-spend... enter Bitcoin as collateral to re-collateralize the banking system.... no more need for fed discretion.