-The White House narrative is simple: The war with Iran has shattered the Persian Gulf economy, and the US is offering its allies a lifeline. -The mainstream media narrative: -The real question: who gets access to the Fed’s balance sheet — and on what political terms. Mainstream media coverage points vaguely toward the instability of …
Tag: swap lines
Will the FED provide liquidity to the Persian Gulf countries, or will China do it with the yuan?
The development that the United States will be forced to provide dollar liquidity to the United Arab Emirates and other Persian Gulf states affected by the closure of the Strait of Hormuz will be very bad news for the “petrodollar”. The Federal Reserve (Fed) has used swap lines with foreign central banks as a key …