Posted by Karl Denninger
In response to the re-emergence of strains in U.S. dollar short-term funding markets in Europe, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing the re-establishment of temporary U.S. dollar liquidity swap facilities.
There’s been no “strain” in dollar funding markets.
There has been an extreme level of strain in Euro funding markets.
But see, the Europeans just announced they’re going to use an SPV – that is, a secret off-balance sheet funding vehicle with over €400 billion in it.
Who’s going to provide the €400 billion? The Fed? (Yes, I know what the Euro folks said. Now how about some transparency? You see, I trust them as much as I trust OUR political and banksters – that is, not at all.)
With what authority does Bernanke effectively appropriate?
Was there an appropriation bill that I seem to have missed by Congress? Or has Bernanke, once again, decided on a unitary basis to entirely ignore the US Constitution?
And furthermore, if he has, will Congress stand for it?
We’re going to bail out European banks now, right? US banks weren’t enough. Oh wait – we did European banks in 2008 too, didn’t we?
Uh, exactly how many taxpayer dollars from US Citizens is The Fed going to give to European banks this time?