How central banking breaks down

Front running the central bank

The repo market

Lender of last resort

Who folds next?

  • Some banks might fret and sell their oversize bag of treasuries and cause a spike in treasury yields, which would freak out others since their bags would be losing and would lead to a crash of the bond market and soon thereafter the economy or
  • The central bank could fold and buy treasuries thereby yet again enrich those front running its operation.

What else?

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Independent, Bitcoin Developer since 2012, Former: CLA @ Digital Asset Holdings, VP @ CoinTerra, CEO @ Bits of Proof, Engineer, Financial Risk Manager.

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Tamas Blummer

Tamas Blummer

Independent, Bitcoin Developer since 2012, Former: CLA @ Digital Asset Holdings, VP @ CoinTerra, CEO @ Bits of Proof, Engineer, Financial Risk Manager.

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