Drudge: NEW WORLD ORDER: BAILOUTS HELPED FOREIGN FIRMS...

WASHINGTON (AP) - The $700 billion U.S. bailout program launched in response to the global economic meltdown had a far greater impact overseas than other countries' financial rescue plans did on the U.S., according to a new report from a congressional watchdog. Billions of dollars in U.S. rescue funds wound up in big banks in France, Germany and other nations. That was probably inevitable because of the structure of the Treasury Department's program, the Congressional Oversight Panel says in a new report issued Thursday. The U.S. program aimed to stabilize the financial system by injecting money into as many banks as possible, including those with substantial operations overseas. Most other countries, by contrast, focused their efforts more narrowly on banks in their nations that usually lacked major U.S. operations.

I hate to rain on everyone’s parade, but:

The federal reserve printed the excess dollars and kept the interest rate too low for too long.

That made obtaining leverage in dollars cheaper for everyone, everyone in the world, whether they were in Oshkosh or in Munich.

In other words the fed’s fuel, the fed’s inflation, the fed’s balloon was not just domestic, it was exported as well.

We - through the facilities of the federal reserve and the functions of our currency in international markets - exported our debt driven, cheap credit driven economic bubble, as much as we used that bubble, domestically ourselves.

So, the “assets” - the cheap, inflated dollar based assets - affected by the whole thing were NOT restricted to only our own domestic retail banks, and liquidity questions arising from the crisis in their value - when the bubble burst - were not limited to such questions on the part of domestic institutions but could be found where ever we (the fed, the money supply, international finance) had exported the bubble to.

Now we know why the Fed needs to be audited. Hell, we are paying the freight. Now, Bernanke is buying treasuries from Geitner....it is like you borrowing money from you spouse to pay off a debt that the both of you owe.

Washington thinks we are all idiots out here in flyover country.

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