Europe self liquidating loans dating baby boomer baltimore md
Perhaps you can see why that’s a challenge but now I’m going to walk you through this story and I’m going to start with this Federal Reserve chart on interbank lending okay so when the crisis hits you can see this is Bank loaning to each other so they feel confident that they’re going to get their money back well all of a sudden when the crisis hit you can see that the levels of bank’s loaning to each other we’re back where they were when with this whole piece just started so it’s quite clear from this you do not give a low and if you do not think you’re going to get paid thanks do not trust each other so who stepped into the for a and this is very important by the way because it supports the market so who stepped in well the Federal Reserve stepped in and rather a big way now they now say that they’re going to reduce this but we’ll see that’s another webinar for another day.
You and I as taxpayers are responsible for that debt that wasn’t enough to create enough liquidity and credit so here’s QE one this is the government buying Treasury bonds qe qe you do not see anywhere in here this pattern until you get here this is a hyperinflationary pattern and by the way this is when we went on to a full fiat money debt system and they’ll be linked so you go in and look at it now what wasn’t actually enough so when we say this is the Fed started buying the mortgage-backed securities and created even more debt wonderful in addition now by the way do you see anything going down now that would be enough this is state and local debt without retirement and pension plans in it again here’s where we went on full debt it just keeps going up they don’t intend to ever pay this debt off I don’t care what they say let’s see this is oh the federal debt and you know we hit the debt ceiling that trillion we’ll see they’ll probably raise it but again.
What self-liquidating means, especially as applied to trade finance, is that the bank stipulates that all sales proceeds are to be collected, and then applied to payoff the transaction and or loan.
Any remainder is credited to the exporter's account.
For example, the 2014 ICC Trade Register what trade financiers always knew: that the discipline remains very low risk, with default rates averaging between 0.03% and 0.24%, depending on the instrument.Bankers who are involved in trade finance like to point to the positive contribution trade finance makes to the economy.And yes, having finance, no matter what its form, shadow bank, alternative finance, bank intermediated trade finance, that can marry to trade flows is good for jobs, it’s good for tax revenue, and growth.When a trade line goes bad, banks can shut it down pretty quickly.Not so true if you are tied up in a medium term commodity financing structure. If you would like to receive TFM's weekly digest, sign up here.