Every counter party that takes cash puts it in deposit and government can get negative rates, is the story I am told.
However, if you buy a ten year treasury bond, government gets the cash deposited at negative rates. You can deposit the bond on contract in your swap net trading group, and get bearer cash to use.
Personal contracts are still valid, shadow banking is still valid, and the marginal lending and savings is liquid within the group. With the bond in reserve to cover account clearing on exit, then we get shadow banking in the swap nets, we make the real term structure, not the fake one. Shadow bankers do this today, sandbox makes it available to all.
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