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 ...
Let ‘er fall!
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.
Hahahaha! I bet it was fun typing that! :)
“Merkel to Press Erkel?”
Yeah, this will go over well. [/s]
Come on Obama, take the bait. I dare ya. I double dare ya!!
LLS
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”.
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.
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.
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.
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
Well, she is the most powerful woman in the world, after all.
And this WOULD constitute treason on the part of the Fed and the Administration.
From us and our children’s children
(crickets chirping)
I too can see a Berlin speech. The media will swear that he is channeling JFK. His actual role model is probably Hitler.
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.
Never happen..Merckle has already thrown away billions of Germany’s $$ on two failed attempts to bail out Greece. If he Fed did this..which it can...the 2012 election would be about how many candidates support abolishing the Fed..heck..Paul could be he next president
Never happen..Merckle has already thrown away billions of Germany’s $$ 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
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
We saved Europe twice with blood and treasure. No monetary bailout for Europe ever. They made their bed. Let them sleep in it.
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.
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