Fed reserve press release unvealing unlimited borrowing. beyond screwed

[ORDagnabbit]

http://www.federalreserve.gov/newsevents/press/monetary/20081013a.htm


Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction. Accordingly, sizes of the reciprocal currency arrangements (swap lines) between the Federal Reserve and the BoE, the ECB, and the SNB will be increased to accommodate whatever quantity of U.S. dollar funding is demanded. The Bank of Japan will be considering the introduction of similar measures.

stop and think about for a minute....

unlimited borrowing = unbelievable inflation at some point.

The dollars are going to become so diluted they will be worthless.

www.moneyasdebt.net

[Mr_Jefferson_24]

1. Hyperinflation is a given...

...and I don't think it's too far out -- just about the time a new administration is to be sworn in would be my guess.

[whistle]

2. Wall Street is setting up new suckers

[muriel_volestrangler]

3. "against the appropriate collateral" is the important phrase there

The collateral will have to be valued. So this isn't 'unlimited'.

[drm604]

4. Yes.

That's a very important phrase. It changes the whole meaning.

[ORDagnabbit]

5. future earnings is collateral. actually anything can be colleteral from

the airspace over their heads to the microbes in the ground.

The fed has set it up to be able to lend any amount they want based on made up definitions of colleteral.