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| It's not fascism when WE do it. |
The U.S. Federal Reserve slashed the cost of emergency dollar loans to foreign banks as the world’s major central banks took coordinated action to prevent Europe’s debt crisis from triggering a global liquidity crunch.
The moves were announced in statements issued simultaneously by the U.S. Federal Reserve, the European Central Bank, the Bank of England, the Bank of Japan, the Bank of Canada and the Swiss National Bank. ...
“Global central banks are opening the spigots and the casualty has been the dollar,” said Kathleen Brooks, research director at Forex.com.
“The extension of the dollar swap lines essentially means that dollars will be available cheaply and on request for the next 15 months to Europe’s troubled financial sector, which will probably greedily eat them up after being starved of much-needed dollar funding since the summer.”
Meanwhile the US consumer's liquidity crisis continues apace:
hours worked remain flat year over year;
real wages have declined nearly 2 percent year over year;
housing values have declined $6.6 trillion since 2006;
owners' equity in real estate is down $6.9 trillion since 2005;
household net worth is down $5.55 trillion since 2006;
unprecedented unemployment above 8 percent has continued for 33 months straight;
the US dollar has declined 27 percent in value in ten years;
debt delinquency rates are running at 10 percent;
open credit accounts have declined by 23 percent since 2008;
the annual percentage rate on the average credit card is nearly 15 percent;
a three year new car loan will cost you nearly 4.5 percent;
a 30 year mortgage will cost you 4 percent, if you can get one;
and the bank pays you doodily squat on your savings.
But if you're a European bank, the US Federal Reserve is making a gift of loans at just 0.58 percent:
The new [dollar swap] pricing will be applied to operations starting on Dec. 5. Seven-day loans would carry an interest rate of about 0.58 percent, down from 1.08 percent, based on the current one- week OIS rate of 0.08 percent.
The bankers' bank has picked its winners again. And you aren't one of them.
debt delinquency rates are running at 10 percent;
open credit accounts have declined by 23 percent since 2008;
the annual percentage rate on the average credit card is nearly 15 percent;
a three year new car loan will cost you nearly 4.5 percent;
a 30 year mortgage will cost you 4 percent, if you can get one;
and the bank pays you doodily squat on your savings.
But if you're a European bank, the US Federal Reserve is making a gift of loans at just 0.58 percent:
The new [dollar swap] pricing will be applied to operations starting on Dec. 5. Seven-day loans would carry an interest rate of about 0.58 percent, down from 1.08 percent, based on the current one- week OIS rate of 0.08 percent.
The bankers' bank has picked its winners again. And you aren't one of them.
