Thursday, September 18, 2008

$600 billion in one week: The world's Central Banks flood the system with dollars . . .

. . . the question is, do they have a choice?

It is amazing. Every headline gives an even higher number of dollars being pumped into the world system.

The most recent AP headline:

"Central banks launch $300 billion assault on credit crisis"

Central banks have now spent more than 600 billion dollars this week to avert a global system failure. In addition, the Fed rescued US insurance titan AIG with 85 billion dollars, having allowed Lehman Brothers bank to fail.

The Fed was joined by the European Central Bank with the British, Japanese, Swiss and Canadian banks in offering to swap currencies for dollars.

Figures from the central banks pointed to a total lifeline of 290 billion dollars on Thursday. The ECB also injected 25 billion euros (36 million dollars) directly and the Fed announced a similar cash stimulus and said it was ready to do more.


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