The Game has been changed. A new Tier 1 Banking Asset is now official.
Cash, Gov Bonds & ..? According to the new Basel standards that are now in to full effect - there is a new king in town. The banksters changed the 40 year rule, opening a door. Did you pay attention?
The half a century standards and regulations for the monetary banking system has been changed, cash and government bonds are not the only Tier 1 Asset Class anymore. Just recently it was changed — Did you pay attention? No, it’s not Bitcoin - even though BlackRock or TikTok fininfluencers may have fooled you to believe so. According to the banksters, there is a new asset class that is now becoming the king, signaling major shifts in the financial markets and the monetary banking system for decades to come. If these banksters are any sign of what is to come, and what you should own - pay attention.
Bonus; Ever heard about the Fractional Reserve Banking system? Effectively 2020, one could argue we moved to a Fictional Reserve Banking system. Did your friendly neighborhood economist inform you? Though, it is not that straight forward as some participants in the fintwit space claims.
We are also going to touch on some of the risks associated with ETF’s, some risks that has been forgotten in recent times, highly more relevant today as the Tier 1 Capital has been fundamentally and technically changed. After the structural change implemented recently in the monetary banking system, the risks associated with ETF’s should be re-assessed.
The banksters just changed the rules. A new price discovery is coming.
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This is not financial advice, and you should always do your own due diligence.
Errors may occur.
The Basel Accords: A Global Framework to Keep Banks in Check
The Basel Accords are essentially the rulebook for banks, designed to make sure they don’t distort or crash the entire global financial system—again. First introduced in 1988, these accords came out of the Bank for International Settlements (BIS) and have evolved over time to address the growing complexities and risks in the banking world. Think of it as a safety net, one that aims to ensure that banks hold enough capital to weather financial storms without needing a taxpayer bailout. Even with Basel I from the late 80s, and Basel II implemented in the early 2000s - it did not act as the buffer it should have, through 2008. And it probably won’t for the next event either.
Why are they there? Well, history has shown us time and time again that when banks overextend themselves—whether through risky loans, speculative trading or many other risky practices—the consequences ripple through the entire economy. The Basel Accords, particularly Basel III, were designed to address the vulnerabilities exposed during the 2008 financial crisis. Basel III, the most recent iteration, pushes banks to hold more high-quality capital, limit excessive leverage, and improve liquidity. Simply put, it's about making sure banks have a cushion when things go south - and they just changed the rules. A new Tier 1 Asset Class - which has been planned for almost two decades, after a full decade with a bureaucratic and political battle - has now finally come to effect - changing the game. Don’t tell mainstreet, the event - sure. The effect - for the ones possessing the ability to do so - don’t.
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