We were warned. The possibility of a financial collapse is real and now the world’s top Central Banks have joined together to come up with a strategy to deal with the possibility of banks collapsing.
On Sunday it was reported that the top Central Banks have joined together to provide a means of protection against a collapse of the banking system.
The Federal Reserve posted this last night (on a Sunday):
Coordinated central bank action to enhance the provision of U.S. dollar liquidity
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements.
To improve the swap lines’ effectiveness in providing U.S. dollar funding, the central banks currently offering U.S. dollar operations have agreed to increase the frequency of 7-day maturity operations from weekly to daily. These daily operations will commence on Monday, March 20, 2023, and will continue at least through the end of April.
The network of swap lines among these central banks is a set of available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses.
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This does not come as a surprise to TGP readers. We have been warning about banking segment issues for days and weeks now. Just this weekend we shared the dire situationof the global banking system.
This is all on Biden as well. We must not forget that.
