Bloody swear word?

[kelleyaynn]

I've been reading some fanfics, and it appears that the word "bloody" 
is actually a swear word in British English. ??????  As an American, I 
have no clue. It sounds like a fairly innocuous word. Along the lines 
of "blasted fool" and "bloody fool" meaning essentially the same 
thing. It seems odd that a word could be completely innocent in one 
context ("bloody bandages" or "a bloody cut") yet offensive in another 
("bloody git"). 

Can anyone clarify this for me?