US Treasury Dept running secret debt sales to China, bypassing Wall Street entirely
by: J. D. Heyes
Wednesday, May 23, 2012
In another sign of America’s increasing debtor status to China, the Obama administration is allowing Beijing to bypass Wall Street entirely when it comes to buy U.S. Treasury bonds, the first time a foreign country has ever been afforded such special treatment.
In a recent exclusive, Reuters said that, according to documents examined by its reporters, the arrangement means China – since June 2011 – has been able to purchase U.S. debt directly, which is differently than any other country in the world. That’s significant because of the secrecy surrounding the deal.
Why weren’t Americans told China has a direct pipeline to their treasury? Is Beijing running U.S. fiscal policy too?