US/European Bank Bailout, prepare for more inflation.
10 replies
padre31luxury_boxOPA surprising (if you don't want to say secretive) meeting of the world's most influential central bankers produced even more surprising results.
The US Central bank – the Federal Reserve – promised the cash-strained European Central bank a practically unlimited amount of American taxpayer money for cheap, effectively bailing out the Euro.
Markets are rallying, traders are full of optimism and the Euro is up. The only loser is the dollar: the good old buck has weakened compared to other currencies. The reason? An announcement from the Fed, the European Central Bank, the Bank of Canada, the Bank of Japan, the Bank of England and Swiss National Bank reveals that they are going to provide troubled European banks with massive amounts of cash – cheaper and faster than ever before. Obviously, the lion’s share of assets will be provided by the US Federal Reserve.
"The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," reads an announcement issued as a result of the meeting — and"ease strains in financial markets" is probably an understatement. For many European banks that found themselves on the brink of collapse because of the debt crisis that plagued the continent, it might have been the last chance. After Germany strongly opposed any unconditional bailouts for the Eurozone countries, many economists expected the US to interfere and do for European banks what the Fed did for American financial institutions in 2008 – bail them out. One way or another.
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
http://rt.com/usa/news/fed-european-bank-central-605/
Was not sure if this political, or economics, being probably both I thought the Econ forum needed the bump.
Anywho, this is very very insidious, most Americans, in today's economic climate would flat out refuse to bailout these Euro banksters as we "could not afford it!", lost in that is Goldman Sachs and the rest of the Banksters hold significant positions in these Euro Banks, meaning if they crashed, they'd lose their investments.
This way, "not a taxpayers' dime was used to bailout a European Bank"!
Would be on the surface, "true", where the American People are being screwed right in the wallet is what is paying for this is perceived value in the US Dollar, this undermines it, meaning every good imported into the US will now..be more expensive in relationship to the manufacturing countries currency vs the dollar.
So basically, what your lone dollar will buy in December 2011, will be less in 2012, the value of your dollar has dropped so Goldman and Co, and the rest of that ilk, can reap profits from their European operations.
These Eurobanks will borrow the funds at .5%, pay off their Deriviative obligations, and still make money buying Govt Debt that is paying them 3% interest, and Americans are losing for it.
This "big interconnected global economy" stuff pretty much means "screw you, I made money for my investors!".
MikeHonchosubscriberIt's akin to serially raping retarded victims.
Headcoach material wouldn’t want to work somewhere they’re not trusted with actual football decisions.
padre31luxury_box"lmeister3 wrote:
It's akin to serially raping retarded victims.
Well, That's a bit much, better said this is the sort of thing that comes from Americans being disinterested in paying attention to anything that they are not pointed directly at, then told to pay attention to because "those bastard so and soes are getting over on you".
What is sort of historic about this period of time is, if one knows their grandparents, they will often say "I can remember when those only cost 10 cents"
Now, with the internet, anyone who pays the scantist attention can say "I can remember when those cost 1.00 and here is why they are so expensive today".
Otherwise, same old same old, the Elites get their way, people :yawn: then suffer down the road for it.
Eshlemonforum_veteranBarnake and the FED have a massive inflation hard on rivaling mine for Morena Baccarin.
padre31luxury_box"Eshlemon wrote:
Barnake and the FED have a massive inflation hard on rivaling mine for Morena Baccarin.
As Keynes said "in the long run, we're all dead"
What amazes me is how blatant this is.
texanphinaticforum_veteranProbably would have got more play in the PoFo, doesnt seem that many people visit here. This move is a gigantic middle finger to the average American, and a direct reply to OWS/Tea Party. It's Washington and the banksters essentially saying "So what, what are you going to do about it" and get away with it.
FinSaneforum_veteranMy age demographic is already 60% poorer than my parents were at this age some years ago, probably heading towards 70-80% now. These economic events are going to have a radical effect on mine and succeeding generations to come.
2socksforum_veteranThis is another of the Obama blunders.
We are going to lend our money to them for basically free or 600% below inflation. So the end result is the Euro will strengthen, our dollar will weaken and WE in the form of higher prices will pay for the bailout of Europe.
Way to go!!!!
Cant wait for you to run again so I can vote for you to do some more damage to this country.
Winning isn't everything - it's the only thing
In Our Business there is no second place
Either your first or your last
Vince Lombardi
padre31luxury_box"2socks wrote:
This is another of the Obama blunders.
We are going to lend our money to them for basically free or 400% below inflation. So the end result is the Euro will strengthen, our dollar will weaken and WE in the form of higher prices will pay for the bailout of Europe.
Way to ****ing go President Douche Bag!!!!!!!!!
That is 75% of it, the remaining 25% is Banksters, like Goldman, are going to reap yet another windfall, that money is going to pay obligations owed to them by Euro banks, and they own shares in those banks as well, in effect, they are double dipping at Taxpayer's expense.
2socksforum_veteranThanks for that Padre. I just wonder and become more and more alarmed each day that we are going to have serious issues soon. To the point where we are stock piling the necessary things to survive while we can. Canned goods, guns ammo and seeds. I was actually looking at a water purifier a little while ago. I have never been this concerned. Never because I do not hear anything. The people are not jumping up and down. It is like nothing is going on and no one....not even fox is covering this stuff. We are talking about trillions of dollars being lifted from right under our noses and we are just rolling along like nothing. We have a serious mess on our hands........
"padre31 wrote:
That is 75% of it, the remaining 25% is Banksters, like Goldman, are going to reap yet another windfall, that money is going to pay obligations owed to them by Euro banks, and they own shares in those banks as well, in effect, they are double dipping at Taxpayer's expense.
Winning isn't everything - it's the only thing
In Our Business there is no second place
Either your first or your last
Vince Lombardi
padre31luxury_box"2socks wrote:
Thanks for that Padre. I just wonder and become more and more alarmed each day that we are going to have serious issues soon. To the point where we are stock piling the necessary things to survive while we can. Canned goods, guns ammo and seeds. I was actually looking at a water purifier a little while ago. I have never been this concerned. Never because I do not hear anything. The people are not jumping up and down. It is like nothing is going on and no one....not even fox is covering this stuff. We are talking about trillions of dollars being lifted from right under our noses and we are just rolling along like nothing. We have a serious mess on our hands........
That won't work 2socks, this has happened in other countries and what happens is, over time those resources are depleted and you still have to function in the economy, as messed up as it is.
As for Fox covering this, keep in mind, there exists a media&govt complex, meaning they hype the petty, and ignore the massive.
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