Read this just after I read that other thing about the upcoming dollar collapse. Jesus, that collapse will be a lot worse with hundreds of billions of EXTRA dollars in foreign hands that will panic to get value for them.
<snip>
For more than a year, the U.S. Federal Reserve System has been increasingly acting as the world's central bank, injecting hundreds of billions of dollars into foreign government treasuries in an effort to increase liquidity in those countries.
The foreign central banks have used the U.S. currency to bail out financial institutions within their borders. The Fed program links its balance sheet directly to the fates of foreign central banks at a time when they're on the ropes.
http://www.meltingpotproject.com/mpp/2009/03/bailing-out-the-world.html">Link to full thing