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kotim, clearly your understanding of the banking system is limited. When the US Fed "prints" $600B, where do you think that money goes. Eventually to the banks to increase lending and boost the economy. Same as what happened in China with the increase in Money Supply by the central bank...

I agree. I don't think there is anything much to read into the story. The Australia banks source money from overseas. At the height of the GFC the financial markets froze, and banks stopped (or severely reduced) lending to each other. If the Fed is then offering cheap financing, the banks...