Tag Archives: Is There A US$ Shortage? Will It Sink The Global Economy? Again?

Mish / Mike Shedlock – Is There A US$ Shortage? Will It Sink The Global Economy? Again? – 11 March 2015

MishMikeShedlockReader Patricia is wondering about a recent ZeroHedge article, The Global Dollar Funding Shortage Is Back With A Vengeance And “This Time It’s Different”.

The last time the world was sliding into a US dollar shortage as rapidly as it is right now, was following the collapse of Lehman Brothers in 2008. The response by the Fed: the issuance of an unprecedented amount of FX liquidity lines in the form of swaps to foreign Central Banks. The “swapped” amount went from practically zero to a peak of $582 billion on December 10, 2008.

The USD shortage back, and the Fed’s subsequent response, was the topic of one of our most read articles of mid-2009, “How The Federal Reserve Bailed Out The World.” Continue reading