The Fed's Inability to Deal With Collateral Swaps

The fed has no jurisdiction whatsoever outside the u.s. Boundary Which is why during the 2008 crisis and at several times since then it has been forced into these overseas dollar swaps because it can't It cannot transact with outside banks outside the United States So in my view network this web of interbank relationship all the weird forms that they take you know from derivatives to everything You know stuff that doesn't actually go on a bank's balance sheet it goes down in the footnotes. All of this stuff happens in ways that the fed I think is really ill suited to handle In some ways, it's not really their fault this bank system evolved outside of the traditional boundaries of money And it was sort