Federal Reserve announces the extension of its temporary U.S. dollar liquidity swap lines. Can someone please translate this into language a 7yr old can understand? - The Great Awakening - Where We Go Qne, We Go All!

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Federal Reserve announces the extension of its temporary U.S. dollar liquidity swap lines. Can someone please translate this into language a 7yr old can understand? (www.federalreserve.gov)

posted 3 years ago by Aussie_Lurker 3 years ago by Aussie_Lurker +60 / -0

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– Aussie_Lurker [S] 2 points 3 years ago +2 / -0

Yes, I get that the dollar is Fucked, totally Cactus Rootus.

But what exactly is a "reverse repo"? Sounds to me a bit like someone being given their car back after it was repossessed for missing payments. Im sure that cant be right tho.

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– deleted 4 points 3 years ago +4 / -0

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– Aussie_Lurker [S] 3 points 3 years ago +3 / -0

So you're saying the Aussie CB & others borrowed more than what they needed from the Fed & then lends it back to the Fed, so the Aussie CB collects interest on the portion lent back while the Fed collects interest on the portion not lent back?

Far out why not just payout that portion of the loan?

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– deleted 2 points 3 years ago +2 / -0

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