BitMex Founder to FED: Use ‘Swap Lines’ to Bailout non-US Banks

• Arthur Hayes said swap lines could provide liquidity without causing a political fuss.
• Swap lines are arrangements between central banks that allow them to exchange currencies.
• Economist Peter Schiff said FED’s $300B QE wiped out four months of QT.

In a series of tweets, Arthur Hayes, a co-founder of BitMex exchange, discussed using ‘swap lines’ as a potential solution for the US Federal Reserve (FED) to provide liquidity to foreign banks without causing political controversy.

Notably, Swap lines are arrangements between central banks that allow them to exchange currencies with each other. Hayes argued that it is ‘politically toxic’ for the FED to be seen bailing out foreign banks when many small domestic banks also need help. However, he noted that the Fed could not overlook non-US banks dumping treasuries into a liquid market, causing further instability.

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It's politically toxic for the Fed to be seen bailing out foreign banks when so many small domestic banks need help.

But the Fed can't have foreign banks dumping treasuries into an liquid market and further fucking shit up.

— Arthur Hayes (@CryptoHayes) March 20, 2023

According to the cry…

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