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Merkel Will Press Obama And The Fed To Help Bail Out The Eurozone.
TBI ^ | 9-13-3011 | John Ellis

Posted on 09/13/2011 3:15:10 PM PDT by blam

Merkel Will Press Obama And The Fed To Help Bail Out The Eurozone.

John Ellis
Sep. 13, 2011, 4:20 PM

We're at the end of "extend and pretend." The crisis of the Eurozone is now acute. The headlines are specific. The best analysis suggests that only extraordinary action can keep it afloat. And even that would work only to delay the inevitable for a month or two more.

The reality is that the Eurozone no longer offers any good option for continued unity. As an Italian policy-maker told Martin Wolf of the Financial Times, "it would be better to leave (the eurozone) than endure 30 years of pain."

At the center of the storm sits German Chancellor Angela Merkel, who is being told by one and all that she must take extraordinary action to save the day. But the truth is she doesn't have the authority to do so, doesn't have the votes, doesn't have the political throw-weight to over-ride the judicial, legislative and political vetoes. She won't save the day because she can't.

So what does she do?

In the days leading up to the collapse of Lehman Brothers, then French Finance Minister (now IMF Managing Director) Chistine Lagarde told then-Treasury Secretary Hank Paulson that he could not allow Lehman to fail. The ramifications would be catastrophic, she said. She was mostly right.

Three years later, it will be Angela Merkel talking to President Obama,Treasury Secretary Geithner and Federal Reserve Bank Chairman Ben Bernanke with exactly the same message. The United States government and the Federal Reserve must come to the rescue of the Eurozone or the ramifications will be catastrophic. And she will say that she needs roughly $1 trillion in financial guarantees and liquidity support. That's the number that will calm the markets.

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; eu; euro; kingofthedeficit; obama4eu; recession

1 posted on 09/13/2011 3:15:12 PM PDT by blam
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To: blam

OK...I need to ask this.....Where do they propose we get the money?


2 posted on 09/13/2011 3:17:13 PM PDT by RC2
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To: blam

A Federal Reserve bailout...hmmmm...I wonder how expensive a gallon of gas will be by Christmas.


3 posted on 09/13/2011 3:17:42 PM PDT by NRG1973
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To: RC2

“Where do they propose we get the money?”

You betcha—hussein will simply print more and/or borrow more from China. Debt and deficit be damned.


4 posted on 09/13/2011 3:18:46 PM PDT by freeangel ( (free speech is only good until someone else doesn't like it)
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To: blam
Sorry, couldn't resist the typo.


5 posted on 09/13/2011 3:18:52 PM PDT by yefragetuwrabrumuy
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To: blam

Obama is probably rubbing his hands - this could be the nuclear weapon that puts the finishing touches on destroying the USA. Make us responsible for bailing out Greece, etc.

It’s a chilling reminder of Margaret Thatcher’s line that the problem with socialism is that at some point you run out of other people’s money. Obama is gleeful at the prospect of helping make sure that it’s the USA whose money gets blown in the final chapter.


6 posted on 09/13/2011 3:20:42 PM PDT by rockvillem
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To: blam

Pass this Bill!
Pass this Bill!
Pass this Bill!

/parasite


7 posted on 09/13/2011 3:21:23 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: RC2
Photobucket
8 posted on 09/13/2011 3:22:35 PM PDT by barmag25 (How many pea's we gotta eat to get out of this mess?)
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To: blam

A trillion hear a trillion there. Pretty soon your talking real money. (I’m waiting for the first MSM reference to “quadrillion” since trillion is so common.)


9 posted on 09/13/2011 3:23:01 PM PDT by 6SJ7 (atlasShruggedInd = TRUE)
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To: blam

Forget it, Angie.

Let those big puppies breathe, crack open a Jereboam of Riesling, point your recliner towards the Hamptons and enjoy the implosion of the EU.

The B-17’s won’t be able to rescue Germany or the rest of Europe this time.


10 posted on 09/13/2011 3:23:14 PM PDT by SnuffaBolshevik ("The trouble with internet quotations is that you don't know if they are true"-Abraham Lincoln.)
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To: blam
'And she will say that she needs roughly $1 trillion in financial guarantees and liquidity support.'

These jokers need to take a hike. We are broke. We are broke. Who is to say 1 Trillion is enough. There is never enough money for socialism and corporatism!

Please ask the GOP contenders who would support these central planned actions!

11 posted on 09/13/2011 3:24:16 PM PDT by Palter (Even liberals need jobs.)
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To: 6SJ7

This is the October Surprise...One year early.


12 posted on 09/13/2011 3:24:24 PM PDT by NRG1973
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To: RC2

From Tim Geithner

He has our national credit card and a $2 Trillion
overdraft passed by Congress, and the obama regime and Harry Reid are not likely to be hindered by silly little promises to find spending cuts before raising the debt ceiling

Geithner has been to Europe twice in the past week


13 posted on 09/13/2011 3:24:46 PM PDT by silverleaf (Common sense is not so common - Voltaire)
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To: blam
With what?


14 posted on 09/13/2011 3:25:13 PM PDT by Maceman (Obama: As American as nasei goreng)
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To: Maceman

Hey, c’mon now.....it’s only one trillion; hell, that’s a pretty good weekend in Dallas, according to USAF Major King Kong!

I hate to say it, but President Obama will likely say, “Okely-dokely” (no offense to Ned Flanders intended).


15 posted on 09/13/2011 3:27:23 PM PDT by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: blam

16 posted on 09/13/2011 3:30:23 PM PDT by Recovering_Democrat
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To: blam

GimmegimmegimmegimmegimmeOpa!Opa!OPa!goodoldunclesammywillsaveusfromthewhammyOpa!Opa!OPa! Gimmegimmegimmegimmegimmegimme.


17 posted on 09/13/2011 3:30:37 PM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: rockvillem
"Obama is probably rubbing his hands - this could be the nuclear weapon that puts the finishing touches on destroying the USA. Make us responsible for bailing out Greece, etc."

I think you're right. This would be an enormous weapon for Obama and proof that he doesn't intend to wait 14 months to assure that the US will collapse so he can remake it from the ashes.

18 posted on 09/13/2011 3:31:51 PM PDT by Truth29
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To: blam

Oh God no, help us...fight this man off our money.


19 posted on 09/13/2011 3:33:55 PM PDT by RowdyFFC
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To: blueunicorn6

Please put that to music or it will be in my head all day!


20 posted on 09/13/2011 3:34:37 PM PDT by jonsie
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To: blam

Let ‘er fall!


21 posted on 09/13/2011 3:35:23 PM PDT by ronnyquest (I spent 20 years in the Army fighting the enemies of freedom only to see fascism elected at home.)
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To: blam
Merkel Will Press Obama And The Fed To Help Bail Out The Eurozone.

Yeah. Good luck with that, Angela.

You would be better off taking it directly to OUR credit source, the Chinese. If they won't loan you money, try Drive Time, they approve everyone who requests credit.

22 posted on 09/13/2011 3:35:34 PM PDT by DustyMoment (Go green - recycle Congress in 2012!!)
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To: blueunicorn6

Hahahaha! I bet it was fun typing that! :)


23 posted on 09/13/2011 3:38:15 PM PDT by RowdyFFC
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To: yefragetuwrabrumuy

“Merkel to Press Erkel?”


24 posted on 09/13/2011 3:39:20 PM PDT by Tallguy (You can safely ignore anything that precedes the word "But"...)
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To: blam

Yeah, this will go over well. [/s]
Come on Obama, take the bait. I dare ya. I double dare ya!!


25 posted on 09/13/2011 3:42:26 PM PDT by rbg81
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To: blam
We are broke... maybe he can get his pal buffett to bail them out.

LLS

26 posted on 09/13/2011 3:46:52 PM PDT by LibLieSlayer (I owe no one but GOD and JESUS... and I owe them everything!)
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To: rockvillem

I can just hear a rerun of his grandiose speech in Berlin. He’ll tell us that Germany’s such a good friend we have to help them - “we’re all Germans now”.


27 posted on 09/13/2011 3:47:05 PM PDT by llandres (Forget the "New America" - restore the original one!!)
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To: freeangel
freeangel wrote:
“Where do they propose we get the money?”

You betcha—hussein will simply print more and/or borrow more from China. Debt and deficit be damned.
More likely we'll borrow it out of thin air. That's been anywhere from forty to sixty percent of our borrowing in recent months.

The fed can call it whatever they want, "Quantitative easing," or "balance sheet expansion," or "Ben Bernanke pulling billions of dollars through his sphincter," but the result is the same. More dollars created out of nothing (not even printed these days, just digitized into someones account on the computer).

The reality is this is a tax on anyone holding dollars. Every dollar out there is worth less when a new dollar is created out of the void.

28 posted on 09/13/2011 3:52:32 PM PDT by cc2k ( If having an "R" makes you conservative, does walking into a barn make you a horse's (_*_)?)
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To: blam
Three years later, it will be Angela Merkel talking to President Obama,Treasury Secretary Geithner and Federal Reserve Bank Chairman Ben Bernanke with exactly the same message. The United States government and the Federal Reserve must come to the rescue of the Eurozone or the ramifications will be catastrophic. And she will say that she needs roughly $1 trillion in financial guarantees and liquidity support. That's the number that will calm the markets.

I have read estimates that the Fed dished out between $16T and 24T during the 2008 financial crisis. Bloomberg reported that the Fed “loaned” over $1.2T to PD banks during that period.

Does anyone really believe the number is $1T? LOL! Add at least a zero and maybe multiply by 2 and you get the picture. It will take $10T to plug this hole, but if they can get us on the hook for a measly $1T, then the final number is just a detail.

It always seems to come down to that famous Von Mises quote:

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

schu

29 posted on 09/13/2011 3:52:54 PM PDT by schu
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To: blam

Well, she is the most powerful woman in the world, after all.


30 posted on 09/13/2011 4:01:49 PM PDT by smalltownslick
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To: blam

And this WOULD constitute treason on the part of the Fed and the Administration.


31 posted on 09/13/2011 4:02:12 PM PDT by Mariner (War Criminal #18)
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To: RC2

From us and our children’s children


32 posted on 09/13/2011 4:02:59 PM PDT by aces
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To: blam
So what have the Pubbie candidiates had to say on this subject?

(crickets chirping)

33 posted on 09/13/2011 4:05:31 PM PDT by mewzilla (Forget a third party. We need a second one.)
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To: llandres

I too can see a Berlin speech. The media will swear that he is channeling JFK. His actual role model is probably Hitler.


34 posted on 09/13/2011 4:09:36 PM PDT by rockvillem
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To: blam

Some of these countries have pretty low corporate tax rates compared to us and american jobs are going over there. No wonder they can’t afford their social programs. Still, I can’t blame them for wanting to attract jobs (wish our gov’t had the same wisdom), but I don’t feel like bailing them out.


35 posted on 09/13/2011 4:24:03 PM PDT by virgil
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To: blam

Never happen..Merckle has already thrown away billions of Germany’s $$ on two failed attempts to bail out Greece. If he Fed did this..which it can...the 2012 election would be about how many candidates support abolishing the Fed..heck..Paul could be he next president


36 posted on 09/13/2011 4:56:35 PM PDT by ken5050 (Save the EARTH...it's the ONLY planet with CHOCOLATE!!!)
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To: blam

Never happen..Merckle has already thrown away billions of Germany’s $$ on two failed attempts to bail out Greece. If he Fed did this..which it can...the 2012 election would be about how many candidates support abolishing the Fed..heck..Paul could be he next president


37 posted on 09/13/2011 4:56:47 PM PDT by ken5050 (Save the EARTH...it's the ONLY planet with CHOCOLATE!!!)
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To: blam

Never happen..Merckle has already thrown away billions of Germany’s $$ on two failed attempts to bail out Greece. If he Fed did this..which it can...the 2012 election would be about how many candidates support abolishing the Fed..heck..Paul could be he next president


38 posted on 09/13/2011 4:57:07 PM PDT by ken5050 (Save the EARTH...it's the ONLY planet with CHOCOLATE!!!)
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To: blam

We saved Europe twice with blood and treasure. No monetary bailout for Europe ever. They made their bed. Let them sleep in it.


39 posted on 09/13/2011 5:05:18 PM PDT by Roklok
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To: Roklok

We pay for their defense already so if they can’t handle deadbeat countries on their own, then too bad. The EU was always a bad idea when it went beyond a common market.


40 posted on 09/13/2011 5:22:42 PM PDT by JMS
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To: ken5050

I wonder how Ben is going to explain to the American People the bailout of Greece. Additional debt on the back of our children for the greater good of the World banksters.


41 posted on 09/13/2011 5:28:58 PM PDT by Orange1998 (Obama also inherited AAA credit rating.)
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To: blam

Sheesh, wasn’t the Marshall Plan not enough to start your Wirtshaftwunder going?

Why did you have to blow it on month-long annual vacations for everybody and other social goodies while we took care of your defensive needs?


42 posted on 09/13/2011 5:33:18 PM PDT by 353FMG (Liberalism is Satan's handiwork.)
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To: blam

Erkel’s shoutouts can’t save Merkel’s bailouts


43 posted on 09/13/2011 5:39:37 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: RC2

Greece!!!


44 posted on 09/13/2011 5:43:33 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: blam

They will do it.

They will do it under the table.

And they will lie and cover up the details just as they have covered up payment of TARP money to foreign banks and others.


45 posted on 09/13/2011 6:34:24 PM PDT by Iron Munro (Muslims who advocate, support, or carry out Jihad give the other 1% a bad name)
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To: blam

The US should help her out. The assistance should be limited to a coach class airline ticket to China.


46 posted on 09/13/2011 8:33:45 PM PDT by tdscpa
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To: Iron Munro
And yet it will only kick the can down the road a little longer. In 2008 and after the fed printed up about 16.3 Trillion dollars to bail out overseas banks ( I presume some of that was for the banks here as well) and yet here we are 3 years later. The next crisis won't be held off for another 3 years either. Two if they are luck, and it won't cost 16.3 trillion. You will probably have to at least double it.
47 posted on 09/14/2011 3:54:17 PM PDT by DarkWaters ("Deception is a state of mind --- and the mind of the state" --- James Jesus Angleton)
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To: blam
Elsewhere was this headline: "Merkel: Greek default would destroy faith in Europe...."

WWI and WWII and then their dopey European Union pretty much did it for me.
48 posted on 09/25/2011 5:09:59 PM PDT by aruanan
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