Bailing Out The Euro?

Dec 1st, 2011

It is certainly beginning to look that way. RT reports:

"The Obama administration always denied such speculations. But after a Monday meeting this week with the two top European officials, European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso, US President Barack Obama said the European debt crisis is of“huge importance”to the United States, and that Americais“ready to do our part”in keeping the economy overseas afloat.

No further details of what he meant by"our part"were offered — probably because any attempt by the administration to hand out taxpayers' money to overseas banks would meet furious opposition in Congress and across the country.

But only two days later, the Fed, which is not accountable neither to Congress nor . . . basically anybody else, announced this deal.

Under the agreement, the FED lends dollars to the ECB, which has to transfer the money to European banks. Now it will be two times cheaper: the central banks must now pay the Fed a private-sector overnight lending rate plus 0.5 percentage point; they previously paid plus 1 percentage point. And there's no doubt that European banks that lost money on junk debt obligations of European governments will line up for almost free American cash."

Yes, this seems remarkably bad. That said, we've allowed the globalists to create so interwoven a collection weaknesses that we really might not have a choice.