Arthur Hayes Blog: The Activation of SRF and Implicit Quantitative Easing Arthur Hayes believes that U.S. President Trump will not finance deficits through tax cuts, as he and the 'red camp' Republicans have recently extended the 2017 tax cut policy. The U.S. Treasury is borrowing money to cover the federal deficit and will continue to do so in the future. The Standing Repo Facility (SRF) allows commercial banks and other financial institutions to pledge eligible securities (mainly U.S. Treasuries) and receive cash provided by the Federal Reserve when cash is tight. Currently, the Treasury is borrowing money through debt auctions (negative for dollar liquidity) but has not yet spent the money (positive for dollar liquidity). This liquidity siphoning effect is one of the reasons for the current weakness in the crypto market. Read the full article: http://(wublock123.com)/index.php?m=content&c=index&a=show&catid=47&id=51359