The Fed shafts us again?
The Federal Reserve is reportedly arranging for 500 billion dollars worth of repo swaps with various European countries, Japan, and Canada, or at least giving them access to a swap window. The way I see it we're giving them relatively stronger dollars (at $1.30/euro) today in return for possibly weaker dollars (at $1.40/euro) sometime in the future. Seems like a bad deal for the American taxpayer. I do not really understand these transactions so I'm hoping someone here can shed light on whether my suspicions are justified.