The Federal Reserve has announced that it will re-establish the temporary U.S. dollar liquidity swap facilities with the Bank of Canada, the Bank of England, the European Central Bank (ECB), and the Swiss National Bank that it first implemented in the early part of the financial crisis.
Further details on these arrangements will be available shortly. It appears, though, that for all practical purposes, the Fed has agreed to bailout the world. Essentially, foreign central banks will print up any amount of money they want in their currency and the Fed will print up an equal amount of dollars that they will then loan to the foreign central banks who will then loan the funds to the banksters who will use as collateral the securities of the PIIGs, to gain the dollars.
Needless to say this is complete and utter madness. It is extremely inflationary on a global scale.What's more, outside of banksters, no one in America will benefit from this move. Every one in America will suffer from the ultimate inflationary consequences.
Continue Reading at EconomicPolicyJournal
