"ABOUT THE BOE: THE FIRST MAJOR CENTRAL BANK " BY GOLDILOCKS, 26 MAY

 GOLDILOCKS

"The BOE is now the first major central bank discussing how it plans to revert to a similar system as before, draining reserves, then using repos – instead of bond purchases (QE) – to deal with issues." 

The transition from government bonds to repos will take time as the remaining "Approved Financial Projects" that deal with infrastructure, real estate, and home loans “will take time to unwind.”  

Here we go. The movement from utilizing bonds for liquidity to Repo Market lending such as the one we are in now called SOFR. 

The Secured Overnight Financing Rate is collateralized by US Securities. The US Treasury holds gold as security for the use of gold certificates issued to the Federal Reserve Banks. 

Gold is a Tier 1 asset under the Basel III banking regulations. This classifies physical allocated gold as the safest tier asset in comparison to cash. Gold is about to become King. 

Under the Basel III rules, gold in allocated accounts is considered a Tier 1 asset and has zero risk weighting.

ETFs or Exchange Traded Funds that we are seeing be formulated on the market through Bitcoin and Ethereum are Tier 3 assets holding a riskier custody opportunity.

Gold is now being relisted, at the Bank of England, as the safest asset over cash going forward. Through the use of our new Tokenized Asset Commodity Based Market, our Stablecoins coins that represent a country's currency is about to be reclassified through gold.

Any country holding gold as collateral can now reclassify their currency as a collateralized security. It will increase the demand for gold and for Stablecoins that represents a country's currency.

This will be inclusive of all countries (ie Iraq) who have become Basel 3 compliant and moving to a local currency regimen as a payment source on the new digital economy. 

As our new Digital Global Regulations through MICA finish this month and produce a white paper for other countries to follow, we can look for new credit valuation adjustments to begin after the June 30th, 2024 deadline for them to become law. 

The demand for gold is the bridge into our next economy, and it's path forward to a new world is about to commence.

Gold will set us free. 

© Goldilocks 

https://www.11onze.cat/en/magazine/impact-basel-gold-market/#:~:text=Thus%2C%20the%20regulation%20reclassifies%20physical,3%20(the%20riskiest%20tier).

https://wolfstreet.com/2024/05/25/bank-of-england-to-sell-all-remaining-bonds-and-use-repos-instead-to-manage-liquidity-financial-stability/