💧FED swap lines = infinite liquidity pool

💧FED swap lines = infinite liquidity pool 👉 here's how: 1️⃣ central banks exchange their foreign currency for USD, 7-80 days later, they reverse the exchange at the same rate + fee 2️⃣ central banks then lend these new USD to commercial banks thus, USD demand is met

FED swap line operations reach ≈$600 bn while the swaps are closed/repaid in less than a year, ≈80% of the repayment comes from newly issued wholesale debt thus, ≈80% of the swap volume eventually becomes new currency in circulation and then you wonder about inflation 😄

new currency in circulation is just one of the side-effects and that transition is neither direct, nor instant before these funds effectively become new currency, they flow into financial markets - that's why you see the stock market going up first the same for risky assets

check the correlation between FED swap line volumes and Bitcoin price large spikes in swap volume trigger an uptrend in Bitcoin understanding these global liquidity flows helps to visualize them as a part of the larger system and understand where it's likely to move next