“This means that, as we expected several months ago, the only recipient of ongoing Fed money printing are not US banks, but foreign banks operating in the US. For those confused about the big picture, here is a chart showing the breakdown of cash held by big and small US banks as well as foreign banks, superimposed to total reserves created by the Fed since the start of the Great Financial Crisis. The correlation is 100%. We are confident that we speak for all when we say: ‘Thank you Ben – insolvent foreign banks appreciate your ongoing QE2 and QEternity-funded generosity’.”
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