How are we in so much debt that we have to borrow from other countries,yet our Federal Reserve can lend money?

...to Europe?





http://blog.taragana.com/business/2010/0鈥?/a>|||We almost have no choice but to do some lending to counter-balance our borrowing. Borrowers are consumers, while lenders are producers. Might as well make ourselves some money, rather than just spending.





But you did ask "how". Well, it's all paper! It's all paper!|||Because the Federal Reserve is not run by the government. They are separate entities. We created them so that the government could not control the money supply, that is, print money. In a lot of countries where money supply is controlled by the government, you might find yourself taking a wheel barrow full of currency to the grocery to buy ONE loaf of bread. This was actually the case for citizens in Germany post WWII.|||Fooker got it right. The Fed is the Central Bank and not part of the government although the chairman may like or dislike the HNIC and tinker with the interest rates at which they lend money to banks. The Fed should not loan money to other countries, only American banks, so I don't get this retarded move on their part. I had no idea that their charter reads that they can lend money to other county's central banks.|||$6.64 billion is not very much money compared to the deficit and the federal budget that is measured in trillions.





the fed is not controlled by the government





part of the feds job is to stabilize currency exchange rate, and this will help do it.





a currency swap is not the same as a loan. see http://www.investopedia.com/terms/c/curr鈥?/a>|||They just print more which in turn causes inflation and the devaluing of the dollar. At least when we borrow money its value is based on the countries currency we borrow it from, so it doesn't effect our own.|||It would take me 12 pages to explain that. Just start by reading the Federal Reserve Act of 1913 and think deeply about the meaning of interest.|||interesting they gave so much to japan, who is as of a couple months ago, the largest single holder of US debt|||Because we are a nation of suckers ruled by a corrupt political class.





For proof see TARP bailouts.|||Because money is worthless, the only value it has is what we give it.|||Because Obama can just print more.