It’s unlikely that anything good will come out of having to bail out the very agency responsible for all bailouts.
In a press release/speech by Riksbank governor Erik Thedeen before the Swedish parliament’s committee on finance Tuesday, he said that the now insolvent central bank needs a capital injection of at least SEK80 billion, or just over $7 billion, representing a little over 1% of Sweden’s GDP.
Methinks the hole in the boat will cause it to sink at some time, regardless of the rate of bailing!
Governments are increasing the hole size while bailing continues….
SO why can’t they just fire up the printing presses like every other western country?
The US is printing so much money so fast that the heat of the presses is a measurable percentage of Global Warming.
“Get yer $100s here! Get yer $100s here! Hot and fresh off the press. Get yer $100s here!”
forget that russian /china bail also??
it is the way of all nations and has been
for centuries..
Well, that’s the problem. They printed too much in the first place. So much that if they sold all the government bonds on their books tomorrow morning and converted the proceeds to real money (gold or silver), they’d still be short.
So now they have to tell Stockholm that if they’re serious about keeping inflation low and stable (even by official measures), Stockholm no longer has a choice. Taxes can hardly go up much further, so Stockholm has to do the unthinkable—actually cut spending below the level it can cover with its income. You know, like their tax-slaves have to do.
$7 billion? That’s chump change, we give more than that to the Indians every time their ground penetrating radar find another anomaly.
they could just force everyone to pay an annual one time tax of $700 and it would cover their mistakes
Hasn’t Sweden ever heard of GoFundMe?
Bank of Canada is bust too. $3 billion in the hole. I’d expect this to balloon given interest rate movements.
BoC was +$1 billion June 2022 and is -$3 billion June 2023.
https://www.bankofcanada.ca/2023/08/quarterly-financial-report-second-quarter-2023/
Luckily for those bonus takers at the Bank of Canada ($27 million in 2022), the bank can keep operating and paying bonuses (section 34 Bank of Canada Act):
No statute relating to the insolvency or winding-up of any corporation applies to the Bank and in no case shall the affairs of the Bank be wound up unless Parliament so provides, but if provision is made for winding up the Bank the notes of the Bank outstanding are the first charge on the assets.