10.25.2023

I understand that a bankruptcy is out of the question

Similar to the Riksbanken Act, there is the Limited Liability Companies Act for limited companies. This law must be applied to all limited companies regardless of whether the company is public or private.

The Limited Liability Companies Act states that if 50% of the company's equity is used up, the company is insolvent and a balance sheet for liquidation purposes must be drawn up. After that, you have 6 months to restore the capital, otherwise the company must be declared bankrupt.

To then read that Riksbanken needs a capital injection of $0.675 billion to restore its own capital to the minimum basic level of the Riksbanken Act means that they have ignored laws and regulations for a long time, as I find it impossible that the need for this capital injection arose from one day to another.

The management of Sweden's central bank is supposed to be the best that Sweden has when it comes to the economy. There are many self-employed people who run small shops and similar businesses who deal with situations like this on a daily basis, but in the correct way.

Roughly simplified, the self-employed person and Riksbanken do the same thing, the only difference is the focus of the business, the size of the amounts and that the self-employed person must comply with the law.

In the same way, you can compare a country's expenses and income with a small household. In addition to the size of the amounts and number of expenditure items, the two have a certain amount of money available each month.

The only difference is that instead of the central bank and the nation going bankrupt, the hard-working taxpayers are forced to pay even higher taxes.

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