|
Sunday, 20 September 2009 04:46 |
|
Another case of two men trying to smuggle US bonds with a total worth of more than 100 billion dollar from Italy to Switzerland. Again, very little information about this in the main stream media.
 So far, only Bloomberg has reported on this: The U.S. Secret Service is examining more than $100 billion of U.S. government bonds confiscated in northern Italy in August, just two months after $134 billion of allegedly fake securities were seized in a nearby town.
The Secret Service is analyzing whether the bonds taken in August may be counterfeit, said a spokeswoman for the U.S. embassy in Rome. Italy’s financial police in Varese, north of Milan, arrested two individuals carrying the securities in a briefcase, according to a person involved in the case.
The Socio-Economics History Blog comments on the Bloomberg report: The word in the street is that countries are dumping US treasury bonds because they know it is becoming worthless pieces of toilet paper. The rumour is that if you need to move US$1B of bonds through ‘unofficial’ channels, you need to take a 40% haircut. Imagine: US$400M discount to move US$1B of bonds. I am not sure whether this is true. But if it is, then, we are close to the next financial tsunami. Countries who have huge holdings of treasury bonds need to dispose of them quietly. Otherwise, they will trigger a panic and the bond price will collapse.
Check this website regularly. More news to follow. Also see our article on the previous bond smuggle attempt of 134,5 billion: Smuggling 134 billion in US bonds
|
|
Last Updated on Monday, 21 September 2009 21:40 |
