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31 sats \ 2 replies \ @justin_shocknet 15 May \ on: US set to cut capital requirements for banks econ
Bessent has been talking about "re-leveraging" the banking system, as rules since the GFC have led to the monetary stimulus we've seen since which is a far worse evil. Powell too has said the SLR needs re-calibration.
It does stand to reason that Treasuries are treated as cash since they're both pulled from the states ass, that's how supply can grow without price inflation like with the aforementioned monetary stimulus.
You can be sure that if Bessent is for it, and the FT is trying to FUD it, it's good news.
Does it have anything to do with the printing of more money?
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Depends how print is defined, this would mean less printing in the form of monetary stimulus and national debt, but does allow the banks themselves to create more private credit elastically with growth (non-inflationary).
Both are good for Bitcoin, as even in a non-inflationary scenario Bitcoin is a savings vehicle... higher growth = more excess savings available for Bitcoin.
The difference is if Bitcoin goes to a million you might actually be able to buy what is today a million dollar house with it instead of that house increasing 10x over the same period.
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