Real Vision founder: The Fed may be forced to adjust fiscal policy to prevent a liquidity crisis, and liquidity management has become a political game.

According to BlockBeats, on November 17, Raoul Pal, co-founder and CEO of Real Vision, stated that the Fed is likely to be forced to “fix the pipes” this week to prevent a funding break crisis at the end of the month and year. Crypto now resembles a financing tool that is experiencing a bank run, and the prices reflect a discount due to “the pipes bursting”; the U.S. stock market is currently supported by buybacks and year-end ranking battles, but if the problems are not resolved immediately, the script of 2018/19 could replay at any moment. The deeper battlefield lies in the Treasury: the Treasury now hopes to control liquidity through banks (increasing loans benefits the general public) rather than relying on the Fed's quantitative easing policies. This allows fiscal policy and monetary policy to remain consistent in stimulating the key goal of benefiting the general public, while also enabling Wall Street to profit from currency devaluation, thereby increasing the value of Collateral. The benefits of quantitative easing will not permeate to the general public. Liquidity management has now devolved into a political game rather than a monetary policy game. Raoul Pal summarized that U.S. decision-makers will “fix the pipes first, then open the floodgates; asset inflation is just delayed, not absent.”