In an essay, Arthur Hayes describes a hypothetical mechanism by which the United States would help Japan support the yen without forcing its institutions to massively sell their US assets. The scenario relies on a modification of the FIMA facility, allowing the Japanese government to deposit its US Treasury bonds with the Fed and reinvest the dollars obtained back into the market. This operation would expand the Federal Reserve’s balance sheet and could, according to Hayes, benefit Bitcoin, gold, and certain altcoins such as Ethereum or ENA. The mobilizable amount is estimated at approximately 1.373 trillion dollars, but the trigger for this scenario depends on a political decision that has not yet been made.
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