“Belgium” Buys $381 Billion In US Treasuries

As Russia continues to dump them.

Zero Hedge reports:

what Zero Hedge first observed, is the country that has quietly and quite rapidly become the third largest holder of US paper: Belgium. Or rather, “Belgium”[sic] because it is quite clear that it is not the country of Begium[sic] who is engaging in this unprecedented buying spree of US paper, but some account acting through Belgian custody.

The grand total this mystery buyer has accumulated is $381 billion.  To put that number in perspective, the total GDP of Belgium is around $500 billion.

Since there are no people in the world with $380 billion at their disposal, it can be assumed this is most likely a state actor. It smells like our own Fed at work.

For the uninitiated, if no one buys up US Treasuries, that leaves the Fed to pick up the slack.  If the Fed doesn’t buy them, interest rates will rise.  If interest rates rise even slightly, the US government will become insolvent because it will not be able to make the installment payments on the debt it owes.

  • Mik

    There are various theories:
    1. (Wolf Richter) Russia did not sell all of its reduction in holdings,
    some were transferred from the Fed to Euroclear to dodge possible
    U.S. sanctions, and the Euroclear holdings show up as “Belgium”.
    2. (Paul Craig Roberts) The Fed siphoned money through Euroclear
    to secretly un-taper its bond buying program – this would be dynamite if true!
    3. ECB buying treasuries to reduce the value of the EUR against USD.
    4. China buying treasuries to reduce value of CNY against USD.