John Fraher Archive

Issing Says IMF Better Suited Than EU to Greek Rescue

[Skip to the end] Except Greece probably doesn’t qualify under normal IMF standards, and the IMF would have to get short euro to make the payment. And ideologically it means ceding control of EU macro policy to an external international institution with strong US influence. Nor does the macro work, as the ...Read More

Fed to lend to CBs in unlimited quantities unsecured (Update2)

[Skip to the end] Functionally, the Fed seems to have agreed to lend USD to the ECB in unlimited quantities unsecured and non-recourse. This defies comprehension. It’s potentially functionally a fiscal transfer. Interesting they have the authority to do that. They wouldn’t even do it for the US banks where the Fed ...Read More

Fed to lend in unlimited quantites to foreign CBs??? (Update1)

[Skip to the end] This is hard to believe. Those CBs don’t have unlimited USD. So, if true, they will be borrowing them from the Fed via an extension of Fed swap lines. The FOMC has approved lines of $620 billion as last reported. This is functionally unsecured lending to these CBs. ...Read More