Why oh why would any bank want to do this? Who benefits other than the Fed who is collecting interest?
Only 2 reasons a central bank in a country with a strong currency would do this:
(1) Their currency is not really strong, they are on the verge of fuckupedness, and need a bailout.
(2) They are part of a scheme to push towards massive global liquidity for the ultimate purpose of crashing the system (and using that as an excuse to implement a new one).
OK, have I got this correct?...
The Fed swaps USD with say the Australian Central Bank at the current exchange rate.
The Fed now has AU dollars that are questionably more stable than USD?
Australian Central bank auctions said USD to highest bidding Aussie bank, theoretically at a profit to the CB?
Then the CB collects interest from Aussie banks & at the end of the contract swaps the USD back to AUD & pays back the Fed with interest?
Why oh why would any bank want to do this? Who benefits other than the Fed who is collecting interest?
It sounds to me like shenanigans. Or have I completely mis understood?
You got it all right!
Remy will give you a nice education on this in a few funny videos: https://www.youtube.com/watch?v=PhgGixOLn_Q ( All I Want For Christmas Is....)
https://www.youtube.com/watch?v=EoS52fVtVQM (Raise the Debt Ceiling Rap)
https://www.youtube.com/watch?v=Q4TKTPv2hqQ (Twenty Trillion Reasons!)
Those were great! TY for introducing Remy to me.
Great stuff, thanks :)
Only 2 reasons a central bank in a country with a strong currency would do this:
(1) Their currency is not really strong, they are on the verge of fuckupedness, and need a bailout.
(2) They are part of a scheme to push towards massive global liquidity for the ultimate purpose of crashing the system (and using that as an excuse to implement a new one).