U.S. Federal Reserve Extends Swap Line with Brazil Central Bank
Posted by WARREN MOSLER on June 26th, 2009
Wonder if they’ve used it?
In my humble opinion lending them $30 billion unsecured is a high risk proposition.
U.S. Federal Reserve Extends Swap Line With Brazil Central Bank
June 25 (Bloomberg) — Brazil’s central bank said today it
has extended an agreement to access up to $30 billion from the
U.S. Federal Reserve as part of a coordinated international
effort to shore up shaky financial markets.
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June 26th, 2009 at 9:04 am
Warren, how come it is OK to give money to the international banks, but not to california, but then to give it to brazil? I am very very confused, if the public purpose goal is to keep worker bees doing busy work rather than have them idle, why are brazilian worker bees more important than our own in california?
Why doesn’t california go to China and ask for some more money that the fed doesn’t want to seem to give?
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Mike S Reply:
June 29th, 2009 at 1:34 pm
Or maybe they can get it from Brazil.
This line was put into place to stop the raise of the Real vs. the dollar. It has had a huge run vs. the dollar due to carry trade - they are at 10% overnight rates.
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June 26th, 2009 at 9:26 am
The US Federal Reserve said Thursday it was extending into 2010 dollar swap deals with 13 central banks. The extended deals were with the central banks of Australia, Brazil, Canada, Denmark, Britain, South Korea, Mexico, New Zealand, Norway, Singapore, Sweden, Switzerland and the European Central Bank.
a high risk proposition? The fed swap dollars for foreigh money for free…
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June 26th, 2009 at 2:33 pm
just part of the general atmosphere of an administration that doesn’t know how the monetary system works and also has a confused strategy by any standards
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