Pal claims US and Japan tweaked bank rules to shift liquidity creation

What was said

"They've changed the banking laws and Japan has done the same thing as well. What they're doing is from 2008 until last year basically all liquidity was provided by the Treasury or the Federal Reserve via the balance sheets and the Treasury general accounts and the repo markets and all this stuff centrally controlled."

Raoul Pal argued that US policymakers and Japan have altered banking regulations so commercial banks, not the central bank, provide more system liquidity. He framed the change as a response to the scale of funding required for the AI and broader investment cycle, saying governments cannot supply it alone.