đ¨ Arthur Hayes: Fed Currency Swaps Could Become a Hidden Money Printer
Arthur Hayes believes the US and Japan could use an unlimited USD/JPY swap line to support the Japanese yen without forcing Japan to raise rates or dump its US Treasury holdings.
In Hayesâ view, the result could look similar to yield-curve control: the Fed creates additional dollars, Treasury yields come under pressure, and global liquidity expands.
That could be bullish for stocks and crypto, as a growing supply of dollars and yen chases scarce assets.
Under this scenario, Hayes believes Bitcoin could potentially reach $1M+.
đ The key indicators to watch:
⢠USD/JPY
⢠The size of Fed dollar swap lines
⢠Any sudden expansion of swap activity
A major increase in dollar swaps could signal that this liquidity mechanism is being activated.
â ď¸ The biggest risk: excessive dollar debasement could eventually undermine the US dollarâs role as the worldâs reserve currency.
$BTC
Arthur Hayes believes the US and Japan could use an unlimited USD/JPY swap line to support the Japanese yen without forcing Japan to raise rates or dump its US Treasury holdings.
In Hayesâ view, the result could look similar to yield-curve control: the Fed creates additional dollars, Treasury yields come under pressure, and global liquidity expands.
That could be bullish for stocks and crypto, as a growing supply of dollars and yen chases scarce assets.
Under this scenario, Hayes believes Bitcoin could potentially reach $1M+.
đ The key indicators to watch:
⢠USD/JPY
⢠The size of Fed dollar swap lines
⢠Any sudden expansion of swap activity
A major increase in dollar swaps could signal that this liquidity mechanism is being activated.
â ď¸ The biggest risk: excessive dollar debasement could eventually undermine the US dollarâs role as the worldâs reserve currency.
$BTC