Posted on 11/28/2011 12:17:28 PM PST by libertarian neocon
I just saw these headlines on Zerohedge, which came from their Bloomberg terminal:
OBAMA SAYS U.S. `READY TO DO OUR PART' TO RESOLVE EURO CRISIS. - BBG OBAMA SAYS SOLVING EURO CRISIS OF `HUGE IMPORTANCE' TO U.S. - BBG
It's hard to actually write a cogent critique of this as this is just such a horrible idea, it practically renders me speechless. What exactly is our part? Are we part of the Euro? Wasn't the Euro created in part to be a competitor to the supremacy of the US Dollar? So isn't it partly in our interest, in order to keep the US Dollar the world's reserve currency, to see the Euro fail horribly? And one more question. The money will come from where exactly? Aren't we ourselves faced with a debt/GDP ratio of 100% with an annual deficit equal to 11% of GDP? Where exactly are we going to find the hundreds of billions, if not trillions, of dollars necessary to stem this crisis? There was a rumor this weekend that the IMF was readying a bailout of just Italy which could have totaled $800 billion, so if you add Spain, Portugal and Greece to the mix (and potentially France) the numbers get very serious very fast (of course the rumor was swiftly denied, I guess it was too early to mention that discussion point). Even if Obama is simply referring to the bailout of Europe via the IMF, our "quota" is almost 18% of the funding so for Italy alone this could cost the American taxpayer $144 billion. And chances are it would be much higher as Italy's quota is over 3% and all the countries smaller than Venezuela contribute 28% (how exactly do you ask third world countries to bailout out a lazy first world country?) so my guess is some IMF participants simply won't participate. Try getting that through Congress. Senate Democrats can't even pass a budget.
The Federal Reserve option just isn't much better. So we are going to print money to buy European bonds now? Our monetary base is $2.6 trillion right now so printing of the magnitude that would be required could have severe a severe inflationary impact, hurting American consumers as commodity prices will undoubtedly skyrocket. As an extra kick in the face, the Euro will actually get even stronger as we will be printing massively at the same time the ECB isn't. Just brilliant.
For once, it might be a good thing that Team Obama is in campaign mode 24/7. As soon as they see their poll numbers dropping (and they will, like a rock), they will probably chicken out of any actual bailout and do nothing but the usual handwaving. Unless they want to get to the point where even Ron Paul can beat them in the general election.
He is a citizen of the world, and nationalism is such an anachronism.
If he does he will meet a very European fate.
Like Ceaucescu. Mussolini. The Romanovs. Louis XVI.....
Obama is just along for the ride. The Eurocrat Empire-builders in Brussels are not going to give up their dreams so easily, and they will act in concert with sympathetic statist Central Bankers, especially the Federal Reserve, to print, print, print money to buy up as much of the EU bad debt as they feel necessary to “stabilize” the EU project.
Once that is done, the EU empire builders will push harder for more integration - common fiscal policy, common taxing, treasury, etc....
He can pay for it with his Visa Crisis Card.
My understanding is United States has $500 Billion in money market funds invested in European Banks. We are screwed....
We’re not big enough. It’s like ten guys rock climbing, all roped together, and one by one, their Pitons are popping out of the rock as they are all dragged towards their collective deaths below. But a really “big” guy at the top grabs onto the end of the rope to save them.
Sorry, he may be one of the larger climbers. They are only gonna drag him down with them if he is foolish enough to grab the rope.
Does that come with a free ride on the Eiffel Tower elevator and escargot for all US citizens?
This would be like jumping into quicksand in order to save someone. If I may be so bold in saying that not only Obama, but any Republican NWO elitist would go for the Euro bailout...
Ooooh...I hope so. I do enjoy snail! But a river of beer should be flowing our way, too.
LLS
Obama reminds me of that Flintstones episode where Fred kept on saying “Bet Bet Bet Bet” except with Obama it’s “Spend spend spend spend SPEND SPEND SPEND S-S-SPEEEND!!!!!!!”
Wouldn’t Congress have the say over funding?
Hey it’s only 7 trillion.
“My understanding is United States has $500 Billion in money market funds invested in European Banks. We are screwed....”
Yup, we are. Our banks have a total of $640 billion in exposure just to the PIIGS countries, the ones most in danger. Much of it in insurance we sold on their sovereign debt (as if we learned nothing from AIG). But its one thing to bailout our citizens with our money and another to bailout another countries (though I think we should be bailout out neither).
Why not,, it seems like that has been the pattern since about WWI./
I am so angry about this treason. THIS IS TAXATION WITHOUT REPRESENTATION. It is not my duty as a taxpayer to rescue the monetary system of any European country. And they say we must because our banking systems are intertwined now. If THAT is true, then THAT was clearly a treason to chain the US taxpayer to the whims and policies of the unelected EU oligarchy. An EU leader can take money from me, but i cannot remove him from office.
It is time for a full revolution. The vote in 2012 is for all the marbles, if we fail there, we must either accept being slaves to foreigners, or we find another method to re-establish constitional government.
The founders would be stunned. This is exponentially worse than what the colonies ever faced.
This is all starting to feel like a game of monopoly...only worse....cause the “play money” is supposedly funding REAL people and countries...
“Sorry, he may be one of the larger climbers. They are only gonna drag him down with them if he is foolish enough to grab the rope.”
Excellent analogy. Roping in with the EU is nothing but a suicide pact.
I really don't think the Founders would be stunned...they were concerned about this lasting longer than 200 years...
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