Journal Le Marteau's Journal: Fed cuts interest rates to 1% 1
The US Federal Reserve cut interest rates by half a percentage point to 1 per cent on Wednesday and announced that it would lend $30bn each to central banks in Brazil, Mexico, South Korea and Singapore to lend on to local banks.
The dollar loans, structured as currency swaps, are intended to help meet intense demand for dollars in these major emerging markets.
Only thing left is for the feds to actually PAY foreign banks to borrow.
"here you go! have a piece of America! What, you mean, you can't afford 1%??? Ok, have some on me as my guest, foreign dudes! help yourself! be my guest! there's more where that came from, believe me! first hit is free. get 'em while their red hot!"
You think that's a joke?
I sure don't. Pay no attention to that man behind the curtain!
The dollar loans, structured as currency swaps, are intended to help meet intense demand for dollars
omg. roflmao. XD even. just priceless (so to speak). And to say that with a straight face! That takes some brass ones, a very prodigious set of brass ones.
And wtf is a "currency swap?" Not sure. I may have seen that on youporn, though.
I called it first, though. They will end up PAYING foreign banks to take their 'money'. They'll call it a "stimulus package" or something, though. And when that does not work... well, "they tried" they'll say, but it was "greed" that done did us all in.
Witness the trashing of the currency, friends. T-minus about a year before the Chosen One heralds in the One True Currency. And the end of the age of "greed" and the beginning of true beneficence, where all will be swell and we'll be protected from the greedy bastards who think only of themselves and don't care about the pathetic.
I can't wait.
They are already - depending (Score:2, Insightful)
if inflation is higher than the 1% discount rate - then effectively the Fed is paying, certainly giving an incentive to the banks to borrow
the Fed can also do tricks with margin requirements and stuff which make it beneficial for the banks borrow and lend rather than hold cash. i forget the exact mechanics sorry.