Here is another idea of mine that I shared with Michael Hudson and he liked it!
An actively traded eurodollar market of the "emerging market economy" sovereign debt: if we the "emerging market" country Central Banks and Sovereign Wealth Funds start trading each others' dollar denominated debt rather than the US Treasuries, we may be able to bring the emerging market sovereign spreads down. This may put a downward pressure on our domestic interest rates relative to the US interest rates and that way we may be able to bring the domestic interest rates relative to the US interest rates down to get rid off this so-called carry-trade, which is nothing but extraction of wealth from the south to the north. We have more resources than the US has. Why are we paying this premium to the US debt? If our Central Bank Reserves have to be kept in the US dollar denominated bonds at the current time, why not each others' dollar denominated debt rather than the US Treasuries? If we can make each others' dollar denominated debt as liquid as the US Treasuries, why not? Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
