International Man: While the term “swap line” sounds technical and harmless, it seems like it’s just a euphemism for a bailout.
What does it say when Washington starts extending swap lines to countries like Argentina and the UAE?
Doug Casey: First, we should define what a swap line is. It basically amounts to the US giving a foreign country X amount of currency in dollars, and the other country paying for it by giving the US the same amount in their currency. For decades, US dollar swap lines were mostly reserved for major allies and core financial centers around the world.
It’s a problem, however, with countries whose currencies have no value…
Read the full article at ACTIVISTPOST.COM
