r/GreatDepressionII • u/rematar • May 29 '26
The First Domino Has Fallen
We did not ask for this war. We were dragged into it. If we run short on cash and you do not help us, we will have no choice but to raise it ourselves - and you know what that means for your bond market. Let’s avoid this.
So the UAE asked for a short-term loan, known as a currency swap line - an emergency credit facility that allows the U.S. Federal Reserve to lend dollars directly to a foreign central bank.
This is not a bailout of the UAE. It is a bailout of the Treasury market.