tag:blogger.com,1999:blog-4102429195693595750.post1025433045220304305..comments2024-03-22T05:15:17.042+02:00Comments on Sudden Debt: The Fed, ECB, BOJ and BitcoinHellasioushttp://www.blogger.com/profile/03564511281240682625noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4102429195693595750.post-56681860389490940712017-11-03T19:52:52.684+02:002017-11-03T19:52:52.684+02:00... and it was me, Arnould, still in France...... and it was me, Arnould, still in France...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-17332578441419344562017-11-03T19:48:27.222+02:002017-11-03T19:48:27.222+02:00Maybe central bankers had never thought about such...Maybe central bankers had never thought about such a simple solution to their situation until you came with it a few days ago, who knows?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-20239319812632968242017-11-03T12:04:12.195+02:002017-11-03T12:04:12.195+02:00Well... a nation's creditworthiness is reflect...Well... a nation's creditworthiness is reflected in its currency, most of all. For example, if the Fed decided to "cancel" the US Treasurys in its balance sheet unilaterally, i.e. without an identical move by ECB and BOJ for their holdings of European govt. and Japanese govt. bonds, the US dollar would plunge precipitously vs. the euro and the yen, and other currencies. Bye, bye reserve currency status.<br /><br />But if they all did it together... it would be feasible, yes. <br /><br />I don't think this has ever been done before, BTW so this is thinking out of the box. <br /><br />Central banks have always bought, held and sold government bonds as part of their monetary operations, of course. But this level of balance sheet ballooning is unprecedented, so I guess it would call for unprecedented actions, when it became necessary.Hellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-26309783838667487252017-11-03T11:46:08.354+02:002017-11-03T11:46:08.354+02:00Interesting, thank you. So the central banks own t...Interesting, thank you. So the central banks own the bonds that they have bought on the market, they are supposed to pay the interests to themselves, this is idiotic, and it would be easier to cancel them. No harm for anybody. Exactly as if I burnt some banknotes. Is it really as simple as that?<br /><br />Arnould, FranceAnonymousnoreply@blogger.com