The Fed Currency Swaps Begin

That didn't take long.

The Federal Reserve provided $9.205 billion of liquidity to foreign central banks since reopening foreign exchange swap lines this last week, the New York Fed reports.

The European Central Bank was the only institution to draw on the swap lines this week, swapping the full $9.205 billion amount.

The terms for the ECB swap were eight days at 1.22 percent, the New York Fed said.

This number has to be watched closely. If it gets out of control ($100 billion or more), there is no way the Fed will be able to sterilize that kind of money printing and severe inflation will be on the way.