http://www.cbc.ca/world/story/2008/09/24/federal-overseas.html
The Federal Reserve, in co-ordinated action with foreign central banks, plowed $30 billion into money markets overseas Wednesday, part of an ongoing effort to fight a global credit crisis.
The Fed's action — taken at 1 a.m. ET — sets up temporary "swap" arrangements to supply dollars to the central banks of Australia, Denmark, Norway and Sweden in exchange for their currencies.
"These facilities, like those already in place with other central banks, are designed to improve liquidity conditions in global financial markets," the Fed said in a brief statement.
"Central banks continue to work together during this period of market stress and are prepared to take further steps as the need arises," the Fed added.
The new swap arrangements will provide up to $10 billion each to the central banks of Australia and Sweden and $5 billion apiece to the central banks of Denmark and Norway.
Last week, the Fed and other foreign central banks pumped as much as $180 billion US into money markets overseas. The European Central Bank, the Bank of Japan, the Bank of England, the Swiss National Bank and the Bank of Canada participated in that manoeuvre.
The global credit crisis poses a danger not only to the U.S. economy but also the world economy.
Finance officials from the world's major economic powers pledged this week to do all they can to provide relief.
The Group of Seven countries said they welcomed the extraordinary steps by the United States to stem the crisis, including a plan for the Treasury Department to buy $700 billion in bad mortgages and other toxic assets held by banks and other financial institution.
Those dodgy debts are at the heart of the crisis. Besides the United States, the Group of Seven is made up of Japan, Germany, France, Britain, Italy and Canada.
Posted 2008/09/24
at 3:46 PM ETin 1993, Canada started to face up to it's debt problems...the US hasn't, yet, always believing they were "too important" to the world markets. the US is now faced with propping up their dollar, a losing battle, especially if this $700 billion dollar bailout of Wall St. goes ahead, and especially once they find out $700 billion isn't enough, especially once hyper-inflation starts to kick in. The lessons of post World War I Germany is, we'd better all start buying wheelbarrows to carry our money in... it's going to be bad!3People
recommended
this comment3Recommend this comment Report abuseGordon Stark wrote:
Posted 2008/09/24
at 3:11 PM ETMcWal_Job wrote: " We need to get out of Harper's economic and trade shackles with the Americans before they take us down with them."
This is PRECISELY why Canada Implemented my Strategic Redundant
Foreign Trade Policy of 2005. By way of this policy, Canada's Economy
would be SECURE while America is Falling, because we made a
redundant secured foreign trade market to secure our economy.
"Someone" has been undoing Canada's Strategic Defense
Initiative for the Americans so that as America is falling, it
might take Canada with it.
These have NOT been things to meddle with as they have been.
That was NOT a trade war America was waging with Canada in 05,
it is the Cold War, and American lost it.1Person
recommended
this comment1Recommend this comment Report abuseTheFacts wrote:
Posted 2008/09/24
at 1:12 PM ETmaritimeconcertpics
I agree ....the system stinks.
That's the problem the world faces ... there is comunism and there is facism - diferent name same purpose: make a few rich and keep most people poor.
