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Then the government says that “a profit was returned to taxpayers.” Really? Did you get a check in the mail? I know I didn’t!
Originally posted by Dance4Life
This concept doesn't make any sense.
Let's say they wanted to do this, I have no idea why, but let's just play dumb and pretend.
How would it be possible to unload and flood the market with dollars successfully while maintaining enough liquidity in all other crosses to simultaneously purchase all others? There is such thing as equilibrium in markets.
But let's just say it is possible (even though it is impossible). All other currency would have large spreads and no trading going on. Basically there is no more movement in the market, everything becomes static, which means everything is worthless.
So why would they want to do this anyway?
Fed Extends Swap Lines With ECB, Other Central Banks
Dec. 21 (Bloomberg) -- The Federal Reserve authorized the extension through Aug. 1 of its temporary dollar liquidity swap arrangements with the European Central Bank and the central banks of Japan, Canada, Switzerland and the United Kingdom.
The arrangements had been authorized through January, the Fed said today in a statement. Fed officials voted in May to restart the emergency currency-swap tool to keep Europe’s sovereign-debt crisis from spreading to U.S. markets. -