In this episode, we will discuss "structural" financing changes between the US Treasury and the Federal Reserve. New asset-backed financing to be issued by the Fed in coordination with Blackrock in which the Treasury has an equity position and acts as guarantor for US Corporate debt instruments and small-business lending facilities, among other debt instruments.
How will this affect the dollar's value? Does this guaranteed debt exceed US Sovereign debt ceiling? Or is it "off-balance-sheet"?
We also examine the current Treasury Statement and delve into dollar value fluctuations in an environment where other Sovereign nations are also seeking financing in the midst of the SARS-CoV-2 pandemic.