The Fed’s growing again, overseas – Sunlight Foundation Reporting Group
Posted May 16, 2010on:
The United States Treasury is empty, broke, busted. We the People’s federal government has a cent to pay our bills. In fact our government is borrowing money to pay the interest on the money we had borrowed previously! But with all that dear old Uncle Sam can again come to the aid of Europe. Go top this article and see the amounts of money we have already given. And while your at it do keep in mind that we the US tax payer will have to eventually pay the lender for all this cash.
The cash swaps are taking Euro for dollars when the Euro is about to become worthless. Then again maybe swapping one worthless money for another is an even trade. Who knows. BB
Earlier this week, the Federal Reserve reopened one of the special lending windows it created in January 2009 to ease the failing global economy. The move comes amid a weakening euro and after Greece, Spain and Portugal have all created austerity packages to help fix their struggling economies.
These currency swaps are a sign that the global economy is still far from stable two years after the financial meltdown of 2008.
The Fed has already infused five foreign central banks with $1.3 billion through a process called central bank liquidity swaps in order to reduce the possibility of any lending strains in Europe, Asia and Canada from spreading to the United States. The Fed restarted the swap process on Tuesday.