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Huge Mushrooming in Central Banks' Liquidity Pumping
l bank tossed in $57.4 billion in temporary funds to the money markets hoping, beyond hope, to "ease tensions" as Reuters coyly put it. Now joining the fire-brigade, the Bank of England announced today it would pump cash into the financial system by next week.
The Fed's move came as it released data today showing that the U.S. commercial paper market shrank for a fourth week, "extending the biggest slump in at least seven years," Bloomberg noted. Commercial paper fell $54.1 billion in the week ended Sept. 5 to a seasonally adjusted $1.93 trillion. The fall included a $31.3 billion decline in asset-backed commercial paper.
The Bank of England said it will, generously, hold its base bank borrowing rate to 5.75% in a gesture to reduce overnight borrowing costs. The BoE, according to AFP wires, said it would raise $35.6 billion for commercial banks to borrow.
We are truly on the road to hyperinflation.