The new world order is upon us. The American government is bailing out foreign banks with Fed (taxpayer) money. Is there a precedent for this? Are American citizens now partially Swiss? I need answers!
The Fed announced earlier this week that it would provide dollars on an unlimited basis to a consortium of foreign banks, including Switzerland’s, in hopes of freeing up world credit markets that have all but ceased to function. Though the foreign banks post their own currency with the Fed in return, protecting the balance sheet of the U.S. central bank, the Swiss announcement said access to dollars through the Fed allowed them to pursue a major bailout that might have been hard to finance otherwise.
“Since the entire operation will be effected in U.S. dollars, it will not affect the National Bank’s monetary policy in any way,” the Swiss bank said in a news release.
In other Swiss news, check out Cafe Select on Lafayette at Kenmare when you get a chance. Their all-Swiss wine list offers some sweet whites. It’s a great place to get to know the culture of our new co-citizens.