A big OS Hat-Tip to Jesse, the ever-droll Jesse, who informs us that the Bank of England will be floating a big debt issue.
No big deal.
In dollars.
Hmmm...
Now, my friends in England's Green and Pleasant Land, if the pound drops significantly against the dollar, the price of that paying off that debt goes up dramatically, out of your pockets.
Now, of course, they'll be buying credit insurance from AIG, the zombie corporation owned by the US Treasury. Whatever AIG loses, we pay for. Sort of like having a cocaine-addicted child and giving him keys to the Ferrari. What could go wrong?
In the end, all those dollars are carried on the backs of the households of the US. It's up to us, in the end, to make good on them.
Ergo, the BofE, with a Wall Street bank, have figured out a way to lay the ultimate risk of this debt issuance off on us, after they are through with you.
Of course, this behavior always comes with a price. Do you guys really want Bernanke, Geithner, and Obama to grasp your good country by the short hairs?
These guys will throw you under the bus, just because they can.
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