Opinion by Mathew Carr
April 9, 2024 — Rich countries including the U.S., Canada and the U.K. are secretly buying each others’ debt to make the countries look stronger financially than they actually are.
The U.S. is seeking risk free status for its debt. Wow.
It’s difficult to know exactly what is going on because the sovereign debt markets are not that transparent.
Kathleen Tyson, a former central banker and whistleblower, and others have been calling out the probable behavior, known as a daisy chain, because it makes a market look prettier than it actually is.
“Secretary Yellen is in Beijing begging for some PBoC buying of US Treasuries duration in this week’s auctions,” Tyson said on X.
Yellen is criticising China for its “overcapacity” in clean energy … is that retaliation stemming from China’s unwillingness to buy US Treasuries?
Huge American banks are among those seeking to give US Treasuries risk-free status under Basel III.
It’s completely reckless.
Bottom line: the ISDA Letter seeks to reclassify US Treasuries from risk assets to risk-free assets…says James Lavish.
https://ckarchive.com/b/xmuph6hr0qvowirnppvnqc03owzll
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