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> the Fed only cares about the US I presume by Fed you mean the not-government 'federal reserve' which is a contractor to Congress which tinkers with monetary
by landemva 3y ago
> the Fed only cares about the US
I presume by Fed you mean the not-government 'federal reserve' which is a contractor to Congress which tinkers with monetary policy and sets the price of money. Federal Reserve quietly provided bailouts to Europe in 2008.
New York Times article,
'“an open facility where European banks could come and get dollars.”
So began what would become the biggest United States government bailout that most people do not know anything about.'
https://www.nytimes.com/2014/02/24/business/feds-aid-in-2008-crisis-stretched-worldwide.html https://www.nytimes.com/2014/02/24/business/feds-aid-in-2008...
- notahacker 3y agoBut they did so because the European owned banks were active in the US serving US customers (and solvent enough to repay) which is why they had the dollar obligations they needed to borrow to meet in the first place. Argentina or Panama having a bit of an economic slowdown whilst the US is growing nicely isn't the Fed's problem: the monetary policy decisions will only take into account to the monetary policy needs of the US, and it's not particularly in the interests of the Fed to bail out Argentine bank reserve shortfalls unless the contagion is likely to hit the Us either.
- landemva 3y agoAt the time, the law authorizing private bank contractor 'federal reserve' didn't authorize those European actions.