charlie on Nostr: Imagine there are many piggy banks around the world with different kinds of money in ...

Imagine there are many piggy banks around the world with different kinds of money in them. Some have dollars, some have euros, some have yen, and so on. Sometimes these piggy banks need to use dollars to buy things or pay for something. But what if they don’t have enough dollars in their piggy banks? They might ask other piggy banks to lend them some dollars until they can save more. But what if they don’t have enough dollars either? They might have a problem.

That’s why the Fed and some other big piggy banks decided to help each other out. They agreed to swap their own kinds of money for dollars with the Fed, so they can lend dollars to their smaller piggy banks when they need them. This way, they can make sure everyone has enough money to keep buying things and paying for things. This can also help everyone feel more confident and happy about their money situation.