It is possible that the swaps provide a mechanism for bullion banks to return gold originally lent to them by central banks to cover bullion bank shortfalls of gold.
We are probably getting to that point where unemployment will turn upward, but there will be a lot of damage set in place by the Fed to play out in the months thereafter.
What are the preconditions necessary for a FedCoin and why are they coming to the fore now? What will happen to banks and could the Fed be the lender of first and only resort?
U.S. Federal Reserve notes are backed by nothing but faith and credit. Since they do not represent anything tangible, such as a particular quantity of gold or silver, they can be issued in unlimited quantities.
