The United States government may have to impose a large -scale “financial repression” to keep the debt burden of $ 36,000,000: UBS:
Global wealth director UBS says that the huge debt burden of $ 36.2 trillion may lead to more extreme financial measures.
In a new report, UBS He says The United States government may have to make the growing debt burden more managed by turning into additional financial repression measures that would reduce the return on government bonds artificially.
“We expect that, in the long run, the United States government may follow both financial monotheism and financial repression – a phenomenon that is already present in a form in the United States and many other countries – containing yields and maintaining high debt burden.”
A possible financial repression may be the repair of supplementary leverage (SLR) for American banks, according to UBS.
“Nowadays, major American banks must keep capital against all assets, including high -quality quality such as the cabinet. SLR dilution can be justified as a banquet, but excluding the cabinet from capital requirements would stimulate banks to keep more cabinet bonds.”
UBS says the United States is in a good position to successfully implement financial repression measures, as long as they are set on a temporary basis.
“For a large and wealthy country like the United States, the financial repression appears widely possible and can enable the government to continue financing the growing debt burden without increasing the risk of failure to pay.
Financial repression can be temporarily spread to provide the financial breathing room, allowing the budget unification and improvement, followed by gradual disposal and return to traditional policy settings. In such a scenario, economic distortions should remain temporary and and can be controlled. “
Follow us xand Facebook and cable
Don’t miss a rhythm – Subscribe to deliver email alerts directly to your inbox
Check the price procedure
Browse the daily Hodl Mix
& nbsp
Disclosure: The views expressed in Daily Hodl are not an investment advice. Investors must do due care before making any high -risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and trading on your own responsibility, and any losses you may bear are your responsibility. Daily Hodl does not recommend buying or selling any encrypted currencies or digital assets, and Hodl Daily Andersor is an investment. Please note that the daily Hodl participates in dependent marketing.
Created Image: Midjourney
