2 ms·
> So why then does the bank of England have and need the right* to print as many USD as they need, whenever they want. The BoE does not even "print" the GBP (e
by throw0101d 9mo ago
> So why then does the bank of England have and need the right* to print as many USD as they need, whenever they want.
The BoE does not even "print" the GBP (except paper/coins through the mint), never mind the USD. Money in the UK, like most countries, is created by banks through credit issuance (loans, mortgages):
* https://www.bankofengland.co.uk/explainers/how-is-money-created https://www.bankofengland.co.uk/explainers/how-is-money-crea...
- ta20240528 9mo ago[flagged]
- throw0101d 9mo ago> Oh sweet summer child. Answered below. Thank you for your condescension: it helped convince me the error of my ways… > Actually I see its 14 central banks that have this USD FX swap facility (but the BoE, ECB, and BoJ are essentially uncapped). * https://news.ycombinator.com/item?id=46616169 https://news.ycombinator.com/item?id=46616169 I am aware of swap lines, and how they were used in the GFC (2008/9) and COVID (2020/1): * https://www.federalreserve.gov/monetarypolicy/central-bank-liquidity-swaps.htm https://www.federalreserve.gov/monetarypolicy/central-bank-l... * https://www.bankofcanada.ca/2023/03/coordinated-central-bank-action-enhance-provision-us-dollar-liquidity/ https://www.bankofcanada.ca/2023/03/coordinated-central-bank... * https://en.wikipedia.org/wiki/Central_bank_liquidity_swap https://en.wikipedia.org/wiki/Central_bank_liquidity_swap Swapping ≠ printing. And if the US wants to cut swap lines, thus making people more nervous about using and holding USD, thus reducing USD as a considered safe haven… ¯\_(ツ)_/¯
- ta20240528 9mo agoYeah on second reading that was inappropriate. Mea culpa But they do - in the most literal sense - just add integers to both sides of the ledger. And then go out and buy stuff with it.