[generally]

More from 3d3n:

In the 1930’s, the Fed created the Exchange Stabilization Fund (ESF) as a backdoor to funnel money to [them]. Sec of Treasury has the keys to this door but not one of them was BRAVE enough to simply funnel the money to our own Treasury. Until this week. And [they] can’t stop it.

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I have no idea what the ESF is or how it works or quite what this tweet really means except that it sounds good for us and bad for the Fed. Any FReeQs able to explain this? TIA.

[bigbob]

See my post #663

[greeneyes]

I don’t know a lot about it. It was used in 2008 to help stabilize the money market funds—initially people were withdrawing from the USD money market funds, until the fed stepped in to guarantee them. Also, it was discovered that the banking problem wasn’t confined to USA. So the money came back to USA Treasuries.

Clinton used it to extend a stabilization loan to Mexico when they were experiencing a financial problem. US actually made money on that.

Current authorization is to stabilize money market funds I suspect.