The $13 trillion in cash being held in offshore banks could threaten USA and global financial stability in the event of a repeat of the 2008 financial crisis, which plunged much of the world into a years-long great recession.
US Security and Exchange Commission chairman Gary Gensler has warned. The state of the US economy has become the top issue of the upcoming November 2024 election.
Analysts and ordinary Americans alike are warning about inflation, housing prices, and risks associated with America’s $35.7 trillion federal debt. Now, the nation’s top financial market regular says there’s another threat to worry about.
Gensler also highlights an additional risk, though one in the banking, rather than non-bank, sector. As it relates to bank deposits, it’s not just the $20 trillion of deposits in the domestic commercial banking and credit union sector.
There’s another $13 trillion of dollar funding offshore in non-US banks. Many of these overseas dollar deposits are uninsured. We’ve seen stress in Eurodollar markets disrupt economies around the globe, such as during the ’08 crisis.
Though the Federal Reserve operates central bank liquidity swap lines with select central banks, I believe there may be more work for those of us in the global regulatory community to ensure resiliency in the offshore Eurodollar markets.
Gensler pointing to measures taken after 2008 by the SEC to reform money market funds, and the additional stress placed on them during the dash-for-cash in 2020 and the pandemic-era economic downturn that affected most of the globe.
His comments come amid warning signs that the USA may be heading for a recession as investors and countries alike flock to gold – a well-established safe haven in economic hard times.
Also nations of the Global South take baby steps to move away from US-dominated global financial institutions over their use to try to enforce the US-led economic and geopolitical world order.
Sputnik / ABC Flash Point News 2024.
Vickie says America is bankrupt.
What has happened to Cosmos Chronicle ??
Is it under attack ( not too likely )
Is in trouble with USA/UK interests .
In trouble with the company enabling the use of the website.
Baronmaya is in trouble with authorities due to allowing the Truth to be posted .
Any comment ?
Correct, internet connection was enabled for 9 nine days, while main computer system was hacked, working from back up computer until full recovery..
Thank you Baronmaya for the truthful reply , I thought something wasn’t right when I couldn’t access the main article to comment -completely understand your situation . If it is any help your website isn’t the first I have been on that’s been attacked by the west I am used to it some have been shut down by those helping to run it by government pressure being applied . It shows to the world that your website is doing its job in this world of controlled populations fed by propagandist lies . I realize complete protection costs a lot of… Read more »
Thanks, we will keep on trying to expose the truth where it is possible for us to navigate.