Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

US taxpayers could be on hook for Europe bailout
MSNBC.COM ^ | 09/16/2011 | John W. Schoen

Posted on 09/16/2011 2:21:38 PM PDT by BradtotheBone

The U.S. is coming to Europe's financial rescue.

So far, America's role is fairly limited. But if the crisis continues to grow and the U.S. takes on a wider role, U.S. consumers and taxpayers could feel a bigger impact. 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. In the short run, those transactions won't have much impact because the central banks are simply swapping currencies of equal value. If the move helps avert a wider crisis, it could help spare the global economy from another recession.

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.

Fed policymakers meet next week to decide whether the flagging U.S. economy needs another round of easy-money measures that could include buying more Treasury bonds to push more cash into the financial system.

So far, no one has floated publicly the idea of the U.S underwriting a broader bailout of the European financial system. But Senate Republicans have already voiced concerns over such a move.

(Excerpt) Read more at bottomline.msnbc.msn.com ...


TOPICS: Extended News; Foreign Affairs; Government
KEYWORDS: bailout; debt; europe; fed; rescue; reserve

1 posted on 09/16/2011 2:21:43 PM PDT by BradtotheBone
[ Post Reply | Private Reply | View Replies]

To: BradtotheBone

How’s that ‘audit the fed’ bill coming along?


2 posted on 09/16/2011 2:24:58 PM PDT by WOBBLY BOB (See ya later, debt inflator ! Gone in 4 (2012))
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone
nevermind...

Federal Reserve Audit Uncovers Secret Foreign Bailouts

In one year, Fed officials offered indiscriminate loans of $16 trillion to a host of European banks, as well as Wall Street titans like CitiGroup, Bank of America, and Goldman Sachs. The GAO found that 65 percent of those “emergency loan” handouts went to foreign companies and banks.

http://www.freerepublic.com/focus/f-bloggers/2755847/posts

and the beat goes on...

3 posted on 09/16/2011 2:30:02 PM PDT by WOBBLY BOB (See ya later, debt inflator ! Gone in 4 (2012))
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone

Limited hell, trillions of debt is not limited.


4 posted on 09/16/2011 2:41:44 PM PDT by org.whodat (so Perry's purchase price starts at $5001.00: and $29,000 , was a sell.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: org.whodat

Bernake has some ‘splainin to do.


5 posted on 09/16/2011 2:48:32 PM PDT by carumba (The secret of life is honesty and fair dealing. If you can fake that, you've got it made. Groucho)
[ Post Reply | Private Reply | To 4 | View Replies]

To: BradtotheBone

It’s getting closer and closer to Tar and Feather Time in old Dee-Cee.


6 posted on 09/16/2011 2:54:36 PM PDT by Iron Munro (Muslims who advocate, support, or carry out Jihad give the other 1% a bad name)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone
and America takes another one in the........

7 posted on 09/16/2011 3:08:19 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone

Noone axed me about this. I didn’t sign up to bail them out.


8 posted on 09/16/2011 3:13:04 PM PDT by RitchieAprile
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone

@%#$%&!!!#@&%!!!

(I can't say what I'm really thinking!)

9 posted on 09/16/2011 4:13:50 PM PDT by alicewonders
[ Post Reply | Private Reply | To 1 | View Replies]

To: BradtotheBone
In the short run, those transactions won't have much impact because the central banks are simply swapping currencies of equal value.

Equal value? The Euro has been dropping as of late - it all depends upon who is printing the most - and fastest.

Like trading ice cubes in the summer time.

10 posted on 09/16/2011 4:21:45 PM PDT by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Iron Munro; All
"It’s getting closer and closer to Tar and Feather Time in old Dee-Cee."

No.

It's time for trials and hangings on the Capitol steps.

11 posted on 09/16/2011 7:05:14 PM PDT by Mariner (War Criminal #18)
[ Post Reply | Private Reply | To 6 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson