The fed injected $237 billion into European

[+OverSword]

From the article:

QE Infinity just keeps on trucking, I guess that’s the point.

Last moth the Fed injected almost $240 billion into European banks to keep them more or less steady. That money came from where? Nowhere. Ben Bernanke conjured it and the Fed deposited it.

This is our economy today. A figment of imagination in a slowly collapsing fiat black hole.

(From Zerohedge.com)

Another way of showing what has happened: in the past 4 weeks, the Fed has injected a record $237 billion of cash into foreign banks with access to the Fed’s excess reserves: a number greater than both the cash influx surge seen after the Lehman collapse, and faster and more acute than the massive build up of cash during the spring and summer of 2011 when all the Fed’s brand new QE2 cash was once again, solely used to overfund European bank cash.

http://www.zerohedge.com/news/2013-02-09/feds-bailout-europe-continues-record-237-billion-injected-foreign-banks-past-month

[Coffey]

I don't understand how that is allowed, when they can't just wipe the debt to the US.

[Stellar]

I don't understand how that is allowed, when they can't just wipe the debt to the US.

Because if the Federal reserve were to give the US the money to pay off the debt, that would in turn indebt them more. Thats how it works, I think. The government wants 100 billion added to the economy, so asks for it from the fed. The fed gives them (loans them) 100 billion with an interest rate.

[Coffey]

Because if the Federal reserve were to give the US the money to pay off the debt, that would in turn indebt them more. Thats how it works, I think. The government wants 100 billion added to the economy, so asks for it from the fed. The fed gives them (loans them) 100 billion with an interest rate.

Yeah i know how thta works. I mean give them it without debt. This is whyt he central bank should be goverment run and not privately owned.

[keithisco]

Dont worry people, your money is NOT going to "Johnny Foreigner"..

"but to subsidiaries of foreign banks operating on US soil."

it is being used to bail out USA debtors,

[Babe Ruth]

I don't understand how that is allowed, when they can't just wipe the debt to the US.

Allowed by whom? The Fed writes their own rules as they go. They do exactly as they wish and are not accountable to a single person.

[Coffey]

Allowed by whom? The Fed writes their own rules as they go. They do exactly as they wish and are not accountable to a single person.

That's my point. lol I meant I don't understand why they don't.