maandag 26 mei 2014

Who is Mysterious Belgium Buyer of U.S. Debt: Jim Rickards and Peter Schiff's take

Jim Rickards says that the ECB could be buying the U.S. debt via Belgium with money from the U.S. Federal Reserve. The Federal Reserve would print U.S. dollars, gives them to the ECB, that goes through Euroclear and they buy the U.S. treasuries anonymously on the books of Belgium. Watch this extremely interesting video below.

Also Peter Schiff suspects, via his radio show, that it's the ECB buying U.S. debt via Belgium. He doesn't suspect it's the Federal Reserve itself, because that would destroy their credibility of tapering QE.
What is clear is that this is not likely the government of Belgium, or private Belgian capital, that is doing the buying. The numbers are just too large. This is particularly true in the First Quarter of 2014 when the buying averaged a stunning $41.5 billion per month (January was the biggest month with $54 billion). In all likelihood, the only European buyer with a wallet that big would be the European Central Bank (ECB) itself.

1 opmerking:

  1. Thankyou Albert. I have been looking at the holdings here:

    You can really see how Belgium has stepped up their buying as Russia pulls back.