Real Vision founder: Liquidity control authority is shifting from the Federal Reserve to the Treasury, and central bank independence will disappear.
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TL;DR
Real Vision's Raoul Pal claims liquidity control is shifting from the Fed to the Treasury, enabling direct government debt management and currency devaluation, ending central bank independence.
Tags
Federal ReserveTreasury Departmentliquidity managementcentral bank independencecurrency devaluation
According to Mars Finance, on November 20th, Raoul Pal, co-founder and CEO of Real Vision, published an article stating that liquidity management authority is shifting from the Federal Reserve to the Treasury Department, allowing the Trump administration to have more direct control over debt financing and rollovers, utilizing banks as channels and issuing notes as a liquidity injection mechanism. This is essentially a fiscally-led, state-managed currency devaluation, eliminating the "non-political" checks and balances of a supposedly "independent" central bank.