All M2 will eventually be converted to M0, it's an inevitable consequence of fractional reserve banking...
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
– Ludwig von Mises
But my point is: you can argue we've moved from fractionally reserved to fully reserved
So m2 is effectively m0 based on this new facility and action to backstop everyone, BUT as long as they still control the SLR, they still control the flood gates of digital units that make their way into the economy.
But they've always controlled the flood gates regardless of the mechanism they use. Central banks' only reason for existence is to dictate the rate at which banks get bailed out, such that the suckers/savers don't lose confidence in the currency.
Not at the individual bank level, though, unless the reserve ratio changes
Yeah, that implies M2 is the new M0 - which is basically hyperinflation of the money supply (i.e. destruction of the currency system)
