Henry Paulson Suggests US Make a Break-Glass Treasuries Plan

Former Treasury Secretary Henry Paulson suggested US authorities prepare a back-up plan in order to avert a potential future collapse in demand for Treasuries resulting from long-running concerns over the federal debt load — an event that he warned would have “vicious” effects.

“We need an emergency break-the-glass plan, which is targeted and short-term, on the shelf, so it’s ready to go when we hit the wall,” Paulson said in comments during an interview for Bloomberg Television’s Wall Street Week with David Westin that ranged from the impact of the Iran conflict to prospects for US-China relations.