The feds are gearing up to pump another $75 billion into the credit markets, reports Reuters.

The Fed was ready to exchange billions in low-risk U.S. government bonds for underperforming mortgage investments from primary dealers as part of steps announced this month to help them raise capital and to encourage broader lending.

Banks are clamoring for extra cash to meet capital requirements ahead of Monday’s quarterly book closing, reducing their willingness to lend and adding to strains in crisis-hit markets.

Banks are currently hoarding their cash. Overnight dollar LIBOR rates — the rates at which banks lend money to each other — are at their highest level since the Fed cut rates by 75 basis points on March 18.

Americans are polluting the world with dollars, says The Mogambo Guru.

“The creation of excess money and credit (monetary inflation) leads to consumer price inflation, which is a Very, Very Bad Thing (VVBT), and that buying gold and silver are the two best things that you could have done with your money!”

“All that Bernanke and his troops are doing is delaying the inevitable,” says The Daily Reckoning Australia’s Andre Snyder. “Eventually, we will find out the federal assistance is doing more harm than good.”