Fed Aids Foreign Banks

The Fed has been aiding foreign banks for nearly as long as there has been a Fed. During the Great Depression ( in 1931, to be specific ), the Fed made loans to the Bank of England, Germany's Reichsbank, and to Austrian and Hungarian banks. The Fed is part of an international network of central banks, and the heart of this cooperative is the BIS ( Bank of International Settlements ) .

"The BIS account was opened in 1931 in the sum of $10 million...

In a letter from Mr. Harrison to Chairman Eccles in September 1936 it was stated that “The deposit was made for the same purpose, essentially, as the credits which the Federal Reserve Banks extended to foreign central banks during 1931. It was made in lieu of our having to respond to requests for assistance on behalf of various smaller European central banks.”

Harrison was George Harrison of the NY Fed, Eccles was Marriner Eccles, Fed Chairman.

There's nothing bizarre about Paul's questions- not if you understand that the Fed is not an agency of US government but of international finance.