Fed plows (another) $30 billion in money markets overseas

[Newsjock]

Source: Associated Press

The Federal Reserve, in coordinated action with foreign central banks, plowed $30 billion into money markets overseas Wednesday, part of an ongoing effort to fight a global credit crisis.

The Fed's action -- taken at 1 a.m. EDT -- sets up temporary "swap" arrangements to supply dollars to the central banks of Australia, Denmark, Norway and Sweden in exchange for their currencies.

"These facilities, like those already in place with other central banks, are designed to improve liquidity conditions in global financial markets," the Fed said in a brief statement.

... Last week, the Fed and other foreign central banks pumped as much as $180 billion into money markets overseas. The European Central Bank, the Bank of Japan, the Bank of England, the Swiss National Bank and the Bank of Canada participated in that maneuver.

Read more: http://biz.yahoo.com/ap/080924/fed_credit_crisis.html

[htuttle]

1. Perhaps I'm misunderstanding something...

...but isn't borrowing money to use to support the dollar sort of self-defeating?

Can a currency spend itself out of the hole that way? Every dollar borrowed makes our currency worth even less, doesn't it?

[Owl]

2. You got it right.

[defendandprotect]

3. The FED is running the country -- and charging us interest --

for the money they're printing --

Anyone mentioning this .. ???

One sure way to destroy democracy is by bankrupting the Treasury --

[dixiegrrrrl]

4. So Fed is doing what Paulson says we need to give him money to do.n/t