US taxpayers could be on hook for Europe bailout

"The biggest exposure could come from America's status as the single largest source of money for the International Monetary Fund.

The latest round of American financial assistance came Thursday with a promise by the Federal Reserve to swap as many dollars for euros as European bankers need."

"But over the long term, consumers could feel the impact of central bankers flooding the financial system with cash, according to John Ryding, chief economist at RDQ Economics.

"This is a lender of last resort function," he told CNBC. "With the dollar injections that the Fed has done, it's like giving a patient medicine with really bad side effects." Ryding said the bad side effect in the U.S. has been inflation, which has picked up to 3.8 percent year over year."

bottomline.msnbc.msn.com...

Welcome back Carter. As if Obama's policies were not harming the economy enough, he is about to potentially backstop billions of European bonds, flooding the global markets with cash that will ultimately lead to a significant rise in inflation. Fantastic, to buy Euros when the currency is likely to drop like a stone, then be stuck with a massively inflated money supply.

Who benefits? Largely German and French banks who hold the majority of Greek, Spanish and Italian debt. The US taxpayer is about to bail out Deutsche Bank and Societe General. Banks who, fully knowing that these economies were in dire condition, that they had consistently failed to meet EU fiscal standards and yet issued more debt, bought that debt.

How about the French and Germans bail their own banks out?

Europe will be fine on its own. They need to sort out this problem and should that mean the break up of the EU or the dumping of the Euro for national currencies or a two tier currency, so be it. Other than being supportive of a positive outcome, the US should play absolutely no role here.

These are the very banks who got large TARP loans as well and I did not see the Europeans in line to bail out US banks when they were lined up to fail and many of them did.

If you are looking for a single reason not to support Obama, this is it. Having his two goons as the US vote on the IMF board, currently Mr. Geithner with Bernanke as the alternative, both men who have done a miserable at guiding the US economy, hold this much power is outrageous, this is the issue.

And when the SHTF for us, the European banks won't lift a damn finger to help us.

Americans have lost homes, jobs, and businesses and what the # are the European banks doing to help us???

Someone fit Bernanke for a noose. He'll look good waving in the breeze next to Obama, Geitner, Summers, and the rest of the scum

I wonder...
how much of the US taxpayer money is used for the taxpayer's good?

I really doubt that the EU is 'swapping' Euros for USDs, even digitally

i suspect the US Fed Reserve is flooding the EU with USD 'liquidity' (ledgered as 'swaps' on the Fed balance sheet) but in real accounting this flood of many more Trillions in USDs are open ended 'Loans'


the European CB will still have their EU balance sheets loaded with Euros.... in addition to the massive influx of digital USDs... it is a flase appearance / illusion the central banks are playing


the USA gets it's currency in demand as a result... this false crutch will shatter when/IF ever the Federal Reserve balance sheet is completely revealed ~ showing that their value is in the neighborhood of negative 30 Trillions of USDs... a sum they ill never recoup.... they will continue to have zero interest till the blue moon comes around or else the global interest on existing debt would completely be absorbed into the central banks coffiers with no wealth to be funneled or spread through the economic systems of all western nations.

do not blame obama or europe,guilty are the superrich and the banks they gave any pizza-driver 500000 dollar credits even they know that can not be pay back

Originally posted by DoctorSatan
I wonder...
how much of the US taxpayer money is used for the taxpayer's good?

the obvious answer is 100% of taxpayer contributions are returned to the taxpayers as services &/or social programs like unemployment, foodstamps, welfare, etc



...but the Deficit Spending come from the unfunded policies like 'the common Defense' =
aka: undeclared Wars agaist terror states, Nuclear weapons upkeep & maintenance, bailing out Wall Street, bonuses to the investment banker faternity, interest due the Federal Reserve for them allowing the US Treasury to issue new monies on a weekly basis...

padding the retirements & perks for current & retired congress and Execuitive/Judicial branches of 'leadership'--- the list goes on to the tune of about $2.4 trillion for each of the next 2 Øbama years in (Lame-Duck) office

America has to stop giving it's money away to foreign interests. We need to fix the home first and then worry about the neighborhood,

In 1943, Roosevelt, Churchill and Stalin met in Tehran to work common grounds in their fight against the facists powers that had threatened, murdered and enslaved their citizens.

Today, Geithner, representing USA state gov, is instead working WITH non-national facists powers - Banks/Corporations, to enslave mankind.

By lending US dollars to shore up tottering European banks, it will only prolong the agony when reality hits. And reality is that those banks had been mismanaged and DID NOT learn their lessons even after MASSIVE bailout funds by mankind had attempted to help them.

US State gov have NO right to interfere with European private enterprises, worse still in the attempt to fool europeans that their banks are liquid when THEY ARE NOT.

Even worse is when the run starts, european banks' collaterals will become worthless and have to stand in queue with a very long of other creditors awaiting liquidation proceedings, espacially their vocal, unforgiving and ready for violence own citizens within each individual EU state.

Those funds being pooled to shore up the illusion BELONGS to the sovereign people of USA, UK, Germany, France and Spain, NOT central banks or State Representatives to do as they please.

Should such entities persists with their illusion tricks, the backlash will come soon from its people that will make the violent UK riots look like a kindergarten yard brawl. May they for goodness sake take heed and do the right thing - let the free hand of market decide the capitalist enterprise's fate, and gov focus instead on circulating wealth amongst those whom will not hoard money - workers.

Swapping one bit of tolet paper for another is not going to solve a dam thing apart from keeping the monoply game going a bit longer as the elite rob you of assets or have you not noticed.

Thanks for the money and all that but i think the americans will need it for themselves and the euro need to drop one hell of a lot to reach it's launch price against the US$

Did Obama ask anyone in the USA before he decided to give away your tax $$$ or is he acting as a dictator !

When it blows we all go down togeather, Europe, UK, USA because all our banks are controlled by central banks and lets just say that these are not owned by christians.

reply to post by dolphinfan


Taxing Americans indirectly (inflation) to bailout Europe? WITHOUT OUR CONSENT? Without a chance to argue, without elected officials doing it?

The FED needs to end.. it's board members thrown in jail for Treason .. eventually we will need to stand up and so NO MORE.

welcome to the club, englands aleady helped out the EU with taxpayers money. dont governments know that they should sort out their own debts before lending out money

The bankers come first, no matter what part of the world they come from.

What good is new infrastructure, education, jobs, clean energy, ect. if the bankers have to cry themselfs to sleep at night like the rest of us?!

Originally posted by illuminatislave
And when the SHTF for us, the European banks won't lift a damn finger to help us.

Americans have lost homes, jobs, and businesses and what the # are the European banks doing to help us???

Someone fit Bernanke for a noose. He'll look good waving in the breeze next to Obama, Geitner, Summers, and the rest of the scum

edit on 17-9-2011 by illuminatislave because: (no reason given)

They will never help us. Europeans have been flirting with socialism and US always has to pay dont we?