Eric King: “Victor, I found it fascinating that the U.S. dollar was on the ropes and appeared to be in serious trouble at the recent lows. Quite frankly it looked to me like intervention took place in the currency markets — your thoughts on the U.S. dollar.”
Sperandeo: “Well, a man who you’ve interviewed and that I respect is Dr. Paul Craig Roberts. He wrote a fascinating piece recently. If the dollar really starts to fall, Eric, that is going to have a great many repercussions. But what the Fed evidently did is they bought dollars through the Belgium Central Bank.
The Belgian holdings of U.S. Treasuries went up a stunning $140 billion. So even though the Fed is tapering, they are buying securities through foreign central banks. The implication by Dr. Roberts is that the Fed puts up the money for these transactions, but most importantly the Fed is not disclosing what they are doing.”
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