Stand with the heroes, Fight the zeros!

Tuesday, September 20, 2011

Banker Bailout

Europeans are irked, miffed and rankled at Tiny Tim Geithner's stern warnings against the eventuality of a Euro-Crash.
"I found it peculiar that even though the Americans have significantly worse fundamental data than the euro zone that they tell us what we should do and when we make a suggestion ... that they say no straight away,"
They say they don't need his lectures, and they're probably right.  They seem to be doing a hell of a job on their own, although they will gladly accept our money to keep the scheme afloat awhile longer.
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.
Make no mistake.  This is a Banker Bailout, at US Taxpayer Expense

We The Taxpayer will pay for this by paying more for everything as the value of the dollar continues to erode:
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.
If Greece and other unstable economies collapse, Goldman Sachs and their international partners in crime would suffer catastrophic losses, and we can't have that!  So you and I watch our savings continue to be eaten away by these rats and cockroaches, while prices climb, all so Tiny Tim can send Europe all the dollars it needs.

They are propping up a rotting edifice.  The foundation has been eroded by rent-seeking rats and moral relativists.  The walls are shot through and the roof is sagging, threatening to fall in at any moment.

Collapse is inevitable.  Maybe all at once, or maybe piece by piece.  A credible argument can be made that it has already started.  Does anyone in their right mind really think Greece, Greece! can pay all that money back? Really?

The Economist explains The Cost of Break-Up.  Experts conclude that more borrowing is the only answer.

It is a bad sign when the only remedy the wizards can come up with is more of what got you in trouble in the first place.

Bloomberg - End The Fed's Dual Mandate

19 comments:

Always On Watch said...

Damn.

America is in dire economic straits and cannot afford to bail our Europe's financial mess.

Always On Watch said...

So you and I watch our savings continue to be eaten away by these rats and cockroaches, while prices climb...


I can so relate to that!

Jersey McJones said...

"If Greece and other unstable economies collapse, Goldman Sachs and their international partners in crime would suffer catastrophic losses, and we can't have that!"

Well, at least now you can see who and what caused all the trouble over there - and it wasn't "European socialism!" LOL!

JMJ

Thersites said...

Doubling down on a rotten already over-extended banking system doesn't sound like a very good plan to me.

conservativesonfire said...

Jersey is so wrong. The bankers have depended on the the Statist/Socialist for their scheme to work. Statist/socialist love to borrow and spend and the Banksters love to lend. That's is how they make their money. But now the capitalist wealth machine can no longer keep up due all the socialist interference. We are all going to have to pay for playing along, but the time is rapidly approaching when the bankers are also going to have to pay. The tiny country of Greece is a great example. There is no amount of austerity or taxing that will allow their pathetic economy to pay off their debt. The rest of us are on the same path.

Silverfiddle said...

Conservatives: I heartily agree

@ Jersey: Well, at least now you can see who and what caused all the trouble over there - and it wasn't "European socialism!" LOL!

WRONG! The bankers didn't shove the money down their throats. These socialist governments spent too much and had to go in hock to pay for their socialist schemes, so you are wrong, European Socialism did cause this crisis.

Jersey McJones said...

Silver, get real. The collapse of the PPIGS was caused by rampant speculation in unrealistically overgrown economies.

You really just don't have a clue about any of that, huh?

JMJ

98ZJUSMC said...

The collapse of the PPIGS was caused by rampant speculation in unrealistically overgrown economies.

Absolutely classic "whistling past the graveyard".

Even Euro politicans don't agree with you.

98ZJUSMC said...

COF: But now the capitalist wealth machine can no longer keep up due all the socialist interference.

Exactly. Socialism can only survive where there is a vigorous capitalist wealth generator to support it. When social safety nets grow to lifetime entitlement, the host begins to die.

Bd said...

Michael Moore: The media ignores Wall Street occupation:

http://www.rawstory.com/rawreplay/2011/09/michael-moore-the-media-ignores-wall-street-occupation/

Silverfiddle said...

Jersey:

How did rampant speculation leave Greece with a humongous debt? Please Explain. Same for Italy.

There was rampant speculation in Ireland, a little less so in Portugal (a beautiful country of wonderful people, btw, unlike Greece which stinks like cheap stale cigarettes).

Still, the rampant speculation was by the private sector. It did not cause their sovereign debt.

Kid said...

This is what parasites do.

Jersey McJones said...

Silver, you do understand that the profits of banks come from debt, right?

98ZJUSMC, (why do you use that moniker, by the way?), are you surprised that the powerful pols, both here and in Europe, beholden to the banks, are looking to put the blame on anyone but themselves and the banks? Really? Surprised?

Wy don't you guys actually read about what happened to the PPIGS? Then you can have an informed opinion, beyond just what your ideological guts want to hear.

Read this: http://www.frbatlanta.org/cenfis/pubscf/vn_credit_default_swaps.cfm

Please.

JMJ

Silverfiddle said...

"Silver, you do understand that the profits of banks come from debt, right?"

Of course I do, Jersey! But the governments borrowed freely. The banks didn't cram the money down their throats.

I'm noticing that even when I make no mention of socialism or liberalism, you bring it up. Guilty conscience? Freudian slip? Projection?

This is an anti-International Bankster screed, not an anti-socialism screed! It was supposed to be something we could agree on and you had to go and blow the warm and fuzzy feelings by dragging ideology into it!

Jersey McJones said...

Silver,

On Planet Happy Place maybe "governments borrow freely," but in real life, governments pay to borrow just like everyone and everything else.

You guys compain about the problem with this arrangement all the time - that government pays to print money, essentially. That whole arrangement with the Fed has always been one of your main concerns regarding monetary policy.

Of course the banks didn't have to force the money on anyone! The banks weren't even taking the risk, for all they knew!

Do you know what a credit default swap is???

JMJ

Silverfiddle said...

Yes. I know what a credit default swap is.

Short-term borrowing, to get you over a hump, can be a good thing. Global borrowing has gone beyond that. It is a corkscrew to hell.

Bastiatarian said...

It's funny when Jersey acts like he knows things and that other people don't.

LD Jackson said...

For the moment, let's ignore who is at fault for the crisis the Europeans are facing and focus on the issue at hand.

Our government has no business trying to bail out the rest of the world. We have enough of our own problems to worry about, which is where our attention should be. I understand we are in a global economy, but since when is Europe more important than America and it's citizens?

Finntann said...

You do know that "to borrow freely" does not mean "to borrow for free", right?

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