Digital Soldier 🇺🇸 🇦🇺 Twitter: the_exception ~ Gab: the_exception ~ WeGo: the_exception ~ Parler: theexception
I’m willing to bet this goes very bad for the Fed.
Spoiler alert: It’s Myanmar’s money to withdraw, and the money isn’t there.
Watch what happens.
Looks like they don't have the liquidities to give them back their total amount, likely, they used most of Myanmar's cash for their own gain through investements. All the banks do this and by law, they are only obliged to keep a fraction of the money.
They should technically be able to use cash from other clients to pay back Myanmar but their refusal implies that they do not have this option.
This means that, it Myanmar insists, we may have a bank-run incoming at the fed level.
wow.
For the sake of thoroughness, a bank-run is a domino effect.
Like I said, no banks keep the full amounts of their clients, they are too busy to use YOUR cash to invest and profit from.
So if a bank does not have enough liquidities on hand to give out a withdrawal in full, it will have to actually withdraw/loan money from another bank.
If this bank doesn't have the liquidities, it will have to do the same thing... and so the dominoes fall.
I have to say though, there is probably a bank out there that does have 1B in stock so it's not a guarantied effect, just a possibility.
grr typo... IF Myanmar insists
