(The NY Fed)
a central bank, and get a high priced loan. Other central banks can work similarly. People can see the bank do that. It's not all that private or mostly secret. Not good for the bank's reputation. So, a little while ago, The Fed set up a TAF (Term Auction Facility) which is largely secret, and low priced USDs are available. A bank probably would have to put up "collateral" (in this case, "collateral" is more like a joke or a huge step away from reality) for the "loan". The Fed takes as collateral or maybe out right buys, makes a "buy", various financial instruments from banks that have "assets" that are not performing the way they should, or are simply not performing. The Fed might be buying for a dollar something that is worth a tenth of a dollar. Not much is out in the open about TAFs.
Or, maybe it could be said that The Fed has turned into the pawn broker for financial institutions. Elegant quarters for a pawn broker.
Central bank capital:
Emergency "All hands man the keyboards" air horns.
Right now there is a banking panic going on by bankers, not their clients. That comes later since the public is still mostly clueless as to what is happening; the "systemic margin call" as JP Morgan put it.
It's probably the same over at the US Treasury where the paper fiat stuff gets produced, although their horns probably won't go off till there are bank runs by the public.
New key boards for the '"money" out of thin' air workers with an extra key added.
Larger pumps on order.
The NY Fed's vault:
If gold is good enough for the Fed, it should be good enough for everybody.
A color view of The Fed's vault door:
A future Fed worker who's job is creating the digital bit US dollars to keep up with the increasing supply of imploding US dollar financial instruments 'cause the Fed is taking them off the hands of all kinds of financial institutions just to try to keep the US financial system operating, even if shakey/phony book keeping is required.
It is going to be a scary site to behold watching The Fed try to bail out a huge variety of financial institutions just to keep the system from virtually freezing up. Heck, the federal government is going to give about $200 billion free "money" to taxpayers and non-taxpayers alike they are so scared of a crashing economy and financial system. Yesterday it was a "Goldilocks Economy". Now all of a sudden it's free US dollar time. They call it a "rebate" but it's not. The US government does not have those dollars of taxes paid to give back. They are already spent. That's how fast they spend it. In fact they spend so much and so fast that they have to constantly borrow to meet their/its bills.
The US might end up giving Zimbabwe a run for its "money". So it might be a good thing to practise carrying around some weight. You might need to do that just to buy a loaf of bread.
Gold and silver are today's protection from central banks.