It’s an island that doesn’t even cover 100 square miles.
The latest TIC flows data shows that the Cayman Islands is the largest foreign holder of Treasury bills, with a whopping 11.3% of all US short-term debt stashed on a tiny island in the Caribbean.
We like to talk about the financial clout and importance of different economies but the most glorious, uninterrupted bull market of the past 50 years has been in secrecy jurisdictions and tax dodging-havens like the Cayman Islands. The list of T-bill holders is a who’s who of tax evasion and dirty money.
Treasury bill holders, in billions
The great untold story of the past half-century is regulatory and tax arbitrage in the offshore system. And I think it’s still just getting started.
