The weekly FED report ending Dec. 14 shows a highly unusual one-week increase in Reserve bank credit of $69 billion. Most of this, $52 billion, is accounted for by central bank liquidity swaps (dollars for euros and later on euros for dollars when the swap is unwound). This follows upon the earlier announcement of the swap extension and expansion. This is “rescuing” some banks and governments in Europe. It’s not really a rescue. It’s more like a temporary propping up. It’s sort of like infusing some blood in the hope of buying time so that the patient can recover; but … Continue reading FED’s Printing Press to the ‘Rescue’