Mario Sikorski Updates Us On More Banking Mumbo Jumbo
By Krista Hughes
FRANKFURT (Reuters) — Major central banks are working on new rules to bolster global liquidity flows in times of crisis by accepting assets denominated in foreign currencies, a Group of Ten central banking source said on Thursday.
They aim to address calls made more than two years ago for them to cooperate more — a recommendation that was issued again in a Financial Stability Forum (FSF) forum report in April.
Under the changes, commercial banks could be allowed to use euro-denominated collateral to borrow dollars from the U.S. Federal Reserve and submit dollar-denominated assets as guarantees for European Central Bank liquidity operations.
“The assets would have to be of high quality,” the G10 source said. “No firm decision has yet been taken.”
If there weren’t an inherent degeneration of “quality” (credit-worthiness) as interest irreversibly multiplies debt into insoluble debt, why the scramble to find further credit for existent assets?
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“To find the players in all the corruption of the world, ‘Follow the money.’ To find the captains of world corruption, follow the money all the way.”
mike montagne — founder, PEOPLE For Mathematically Perfected Economy™, author/engineer of mathematically perfected economy™ (1979)