Gillian Tett: Federal Reserve's swaps intervention will preserve dollar's reach


By Gillian Tett
Financial Times, London
Thursday, May 21, 2020

When Jay Powell, U.S. Federal Reserve chair, was grilled in Congress this week, the focus was on how the central bank has helped American companies and consumers during the pandemic. Senators should have also asked -- but did not -- what the Fed has done recently to help dollar markets outside U.S. shores.

That was a big oversight. When future financial historians study the Covid-19 shock, they will conclude that the Fed's intervention in offshore dollar markets via swaps deals with other central banks was one of its most significant policy moves. Not only has the Fed's action calmed markets, it has shored up the hegemony of the dollar-based global financial system for years to come.

... Dispatch continues below ...


Buy, Sell, or Store Precious Metals with Money Metals Exchange

Money Metals Exchange, a national bullion dealer recently voted "Best in the USA" by a worldwide ratings group --

-- is a great low-cost source for precious metals coins, rounds, and bars. Money Metals also pays handsomely when you wish to sell your precious metals.

Shop online with Money Metals Exchange here --

-- or by calling 1-800-800-1865.

Meanwhile, Money Metals Depository will store your precious metals in a segregated account at low cost:

To understand all this, some history is required. The concept of central bank swaps, in which two institutions exchange currencies, is not new. Such central bank co-operation had a "sustained pre-history from 1962-1998," according to a Bank for International Settlements paper. But their use faded in the early 21st century as the Fed focused on onshore dollar markets and the American economy.

That changed abruptly in the 2008 crisis. Historian Adam Tooze notes that policymakers suddenly realised that non-U.S. financial companies, particularly in the eurozone, had built up massive, unbalanced dollar exposures. They owed dollars to investors but were unable to obtain enough of the currency in private markets, sparking panic. ...

... For the remainder of the analysis:

* * *

Toast to a free gold market
with great GATA-label wine

Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.

Here's what the bottles look like:

Buyers can compose their case by choosing as many as four varietals from the list here:

GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?

To order a case of GATA-label wine, please e-mail Fay J Winery at

* * *

Support GATA by purchasing
Stuart Englert's "Rigged"

"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --

-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: