Tom welcomes back Alasdair Macleod, Head of Research For GoldMoney. Alasdair discusses the Fed’s levels of reverse repos and quantitative easing of 120 billion a month. Since the banks can’t absorb all the extra liquidity-seeking returns, the Fed must step into the market. To subscribe to our newsletter and get notified of new shows, please visit palisadesradio.ca Basel III’s net stable funding ratio requirement purpose is to reduce short-term deposits. These regulations exist to minimize risk with the banking system’s liabilities. The ratio takes the available stable funding, which is a liability and ranks them according to stability. Anything unstable is prohibited from being used against the asset side. These rules encourage banks to increase their reserves because more are required to cover their operations.