Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
swap arrangements aren't a form of "bailout," nor are they a form of "printing money."
furthermore, we engaged in these swap agreements with the bank of japan, bank of england, bank of canada, ECB, and the swiss central bank, among others. Some of those countries had (and still have) stronger currencies than we do.
The question is, when will the rest of the world realize we are handing out worthless play money that amounts to little more than a slip of notebook paper with "IOU" written on it?
Of course, that's essentially what it has always been. But at one time it was backed by a bit more than a smile and a finger... and an outstretched, open hand (palm up).
swap arrangements aren't a form of "bailout," nor are they a form of "printing money."
furthermore, we engaged in these swap agreements with the bank of japan, bank of england, bank of canada, ECB, and the swiss central bank, among others. Some of those countries had (and still have) stronger currencies than we do.
Actually, one needs to be careful here. The details matter. People get confused when such abstraction and obfuscation occurs. Liquidity and fungibility are important here. So is the clear picture of who is getting what.
Yes swaps have been around for awhile. The derivatives market has really taken off since the 90's. SWAPs are going to continue to increase it appears.
A similar issue has come up with QE discussions and yet thanks to JPM we can see what was happening there with that GAP.
Actually, one needs to be careful here. The details matter. People get confused when such abstraction and obfuscation occurs. Liquidity and fungibility are important here. So is the clear picture of who is getting what.
Yes swaps have been around for awhile. The derivatives market has really taken off since the 90's. SWAPs are going to continue to increase it appears.
A similar issue has come up with QE discussions and yet thanks to JPM we can see what was happening there with that GAP.
there are different types of swaps ..
the swap we're talking about here is just managing interest-rate risk between multiple developed economies. So the U.S., Canada, Switzerland, the EU, Japan, and the UK are all getting together to partially "share inflation and deflation", and keep their currency values partially linked together. This is to provide stability and predictability.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
