[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Julie Wade [@julie_wade](/creator/twitter/julie_wade) on x 6652 followers Created: 2025-07-22 17:58:11 UTC For years, I have been concerned about a fundamental disconnect in our international financial policy. The Federal Reserve's substantial U.S. dollar swap lines to the ECB coincided with a period of stagnant or declining GDP in the Eurozone. This contradicts the stated purpose of these swaps, which is to provide dollar liquidity to support trade and new contracts. The evidence suggests these swap lines have evolved into a continuous stream of liquidity. A significant concern is that these funds are being used to purchase U.S. Treasury securities, effectively creating a feedback loop that helps sustain our own national debt at the expense of fiscal discipline. This monetary situation is compounded by trillions in new federal spending, with the ultimate liability falling on the American taxpayer. Given these circumstances, any internal audit, such as one led by Inspector General Horowitz, is unlikely to produce the transparency and accountability required. A truly independent and rigorous audit is essential to restore public trust. To avert a crisis, we need a fundamental change in leadership and policy at the Federal Reserve. The cycle of creating asset bubbles must be broken. There are viable solutions: Direct-to-Public Treasuries: The government should resume selling Treasury bonds directly to the public, much like the successful E and EE savings bond programs of the past. This would create a stable, domestic source of funding. Market Correction: To make these bonds attractive, a higher interest rate would be necessary. This would have the secondary benefit of correcting dangerous overvaluations in the equity and housing markets. Financial Innovation: The recent institutional movement toward regulated stablecoins is a positive development that should be encouraged as a modern and transparent financial tool. It is not too late to deflate this "Federal Reserve bubble" responsibly. However, it requires decisive action to rein in the Fed and restore sound economic principles. XXX engagements  **Related Topics** [gdp](/topic/gdp) [money](/topic/money) [united states dollar](/topic/united-states-dollar) [$xwp](/topic/$xwp) [Post Link](https://x.com/julie_wade/status/1947717829131718944)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Julie Wade @julie_wade on x 6652 followers
Created: 2025-07-22 17:58:11 UTC
For years, I have been concerned about a fundamental disconnect in our international financial policy. The Federal Reserve's substantial U.S. dollar swap lines to the ECB coincided with a period of stagnant or declining GDP in the Eurozone. This contradicts the stated purpose of these swaps, which is to provide dollar liquidity to support trade and new contracts.
The evidence suggests these swap lines have evolved into a continuous stream of liquidity. A significant concern is that these funds are being used to purchase U.S. Treasury securities, effectively creating a feedback loop that helps sustain our own national debt at the expense of fiscal discipline. This monetary situation is compounded by trillions in new federal spending, with the ultimate liability falling on the American taxpayer.
Given these circumstances, any internal audit, such as one led by Inspector General Horowitz, is unlikely to produce the transparency and accountability required. A truly independent and rigorous audit is essential to restore public trust.
To avert a crisis, we need a fundamental change in leadership and policy at the Federal Reserve. The cycle of creating asset bubbles must be broken. There are viable solutions:
Direct-to-Public Treasuries: The government should resume selling Treasury bonds directly to the public, much like the successful E and EE savings bond programs of the past. This would create a stable, domestic source of funding.
Market Correction: To make these bonds attractive, a higher interest rate would be necessary. This would have the secondary benefit of correcting dangerous overvaluations in the equity and housing markets.
Financial Innovation: The recent institutional movement toward regulated stablecoins is a positive development that should be encouraged as a modern and transparent financial tool.
It is not too late to deflate this "Federal Reserve bubble" responsibly. However, it requires decisive action to rein in the Fed and restore sound economic principles.
XXX engagements
Related Topics gdp money united states dollar $xwp