Fed Pumps Further $630 Billion Into Financial System

Well, if Bernanke pumped all that dosh in the financial system  shouldn’t that thaw the frozen system? No all it does is dilute the value of the dollar even more. Be prepared to carry bags of dollars to a shop for a loaf of bread.

Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.

The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.

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