Euro-aid plan approved by EU, Money printed out of thin air!

www.cbc.ca...

European Union finance ministers agreed Monday on a $914-billion US safety net for troubled eurozone countries, hoping it will keep markets from targeting the weaker members of the 16 countries that use the embattled euro.

www.bloomberg.com...

We Would Defend The EuroZone

Oh and they also printed the money in US dollars!!




So anyone know how long will this hold?

reply to post by Agent_USA_Supporter


This is great news, as I have heard it will help to stop the troubles of Greece from spreading. How would you handle the situation?

Best,
SN

Originally posted by skunknuts
reply to post by Agent_USA_Supporter

 

This is great news, as I have heard it will help to stop the troubles of Greece from spreading. How would you handle the situation?

Best,
SN

this wont stop the troubles of Greece from spreading.

reply to post by Agent_USA_Supporter


And why exactly do you say that?
No real opinion OP?

Let me read the article and I'll tell you what I think.

this like those bailouts, it works like it, and it wont solve anything, i cant believe your buying into it.

I will always say lets see what this week brings us.




[edit on 9-5-2010 by Agent_USA_Supporter]

Well in that real short article, i see no mention of them printing in US dollars.
And from what I've read, this seems to be a lot better than letting multiple countries fail.
But then again the article doesn't really address how this will be paid for. Well 250 Billion from the IMF that would hit our pockets some time after all.

There is only 2 things to do.

1) Constrict the money supply over time

2) Cut taxes

That's about the biggest 2 things government can do. Printing more money will exacerbate the problem as it will simply dilute the money supply.

It's only a quick fix band aid. Liquid courage (booze) doesn't make you brave for life, only as long as you are peaking from the effects.

reply to post by Agent_USA_Supporter


Out of thin air? I assume there were some trees involved. And various chemicals, presses and such.

Since when has printing money like no tomorrow ever solved or prevented a financial crisis??? The previous bailouts have not succeeded in producing anything more than a bailout bubble that has already begun to burst...

A short-term fix only adds to sovereign debts of EU nations.

Who will bailout Spain during the next engineered crisis??? Or the German & British banks with hundreds of billions of assets in these debt ridden nations (including our own)?

The too bigs to fails get bigger and bigger, and the ordinary man or woman will be taxed even more to keep the larger banks afloat at any cost.

This daylight robbery by the bankers once again is like somebody stealing your car, selling it back to you, and then stealing it again! They take your money, and then loan it back to you at higher interest rates.

[edit on 9-5-2010 by john124]

reply to post by Agent_USA_Supporter

Oh and they also printed the money in US dollars!!

You complete misunderstand the article. It QUOTED the figure in US dollars, most probably because most currencies still peg their currency against the US dollar, and lately, the dollar has been much more stable than the Euro, which is falling like a rock. The Bloomberg article quoted both the Euro figure and the US figure. The IMF contribution will eventually cost the US approximately 7 billion dollars.

This won't work. Remember when Greece debt issue was supposed to be only 30 billion or so and then over a course of one week shot up to 140 billion (at least, we still don't know) after G-pap came somewhat clean. And this is a country of only 11 million people. Portugal is in major trouble and Spain had been rumored to be needing 389 billion euros, which the Prime Minister denied (which usually means its true). Spain is the California of the EU in regard to the crazy housing. They say they may need as much as a trillion in euros to bail out the whole Spanish economy. They came up with this plan to stop the bloodletting on Monday, but I don't think it will work. Europe and the US will eventually have to take it's fiscal medicine which is severe austerity and broken promises.

This planet has gone absolutely nuts in thinking that creating more debt is the answer.

The end game is world war...

reply to post by Agent_USA_Supporter


Woah buddy .. first.. yes big news.. but second, you got every thing wrong?

The package is in EURO's not Dollars..

Under the loan package, euro-area governments pledged 440 billion euros in loans or guarantees, with 60 billion euros more in loans from the EU’s budget and as much as 250 billion euros from the International Monetary Fund.

From your own Bloomberg link.

The IMF Funds are not .. specifically US.. Currently the USA holds the majority share, but not a Super Majority. The IMF is actually set up like a Corporation, and the funds in SDR (4 currency denomination) = 1 share vote.

Currently we supply 17% of the funds, and have something like 16.8% of the votes.

It's a stupid organization that seriously disrupts the health of the International Markets..

The Eurozone is set to collapse, it's death is imminent.. it's highlighted by first 1 $60 billion loan, now a $1trillion dollar loan and backstop is needed... it's dieing.. fast.. and we are injecting steroids to no end.

Once Europe burns through this cash reserve, and it may take 2-3 years, Europe will burn.

reply to post by Rockpuck


Well not everything wrong


I predict the euro will crash this summer or fall.

reply to post by Agent_USA_Supporter


The plan only works if the person borrowing the money wants it..., not sure if the Greek people actually want the money.. which could cause problems (tho I am sure other states in the EU might, but I think a lot of people are deeply concerned at borrowing more)

Secondly the German gov got a bit of slap from their own voters (assumed unhappy at German participation in this mess and spending German cash) and we'll now see a change of dynamics in the German gov. Which could set a domino effect in motion...

All in all not brilliant news...

[edit on 10/5/10 by thoughtsfull]

They are out of money, and this will not work. But, it may take awhile for everyone to figure out that we are living through the worlds biggest Ponzi scheme.

Or, you can still believe that the stock market goes up forever and that you can fix a debt problem by creating more debt. That is what they are doing, trying to fix a debt problem, by borrowing more money, and that never works. It might work for some time, but not in the long run. It does not seem to be working for the U.S., but I could be wrong.

If we were having a real economic recovery, none of this would be happening. People with no jobs cannot pay taxes and spend money. This applies all around the world. If we were truly experiencing recovery, there would be more tax revenues, and people would not be unemployed.

If you believe this will work, you are listening to the mainstream media. The same people who told us that everything would be fixed in 2008 by bank bailouts. It seems that they were not correct, however, maybe everything will work out just fine in the end, or at least I hope so.

The bailout worked out so well for the bankers in America that their European counterparts demanded a piece of the action! Why loot only the US economy when you can loot the Eurozone economy too! It's easy to see this leading to a call for a new world reserve currency when the two biggest international currencies are facing hyper-inflation. Can't wait to see what the yuan does in coming months.

Guys I tell you what will happen:

USA bailout was around 800 $ billion in 2009

EU bailout is around 750 billion Euros in 2010

===

The stage is now set for a global meltdown.

This is like a drug addict, he just got two shots (the two bailouts) one from US, that lasted until this month and the one from EU that will last about half a year or more. After that he either gets a new one or he'll collapse.

This is our economy right now.

The problem is that due to these bailouts the seizure will be worse when it comes. Prepare for a total collapse, I think the EU bailout will be the last one, next total meltdown.

How interesting are these bailouts, money that go where? To the Banks of course. Before they destroy the system they will exploit it to the maximum.

All this new EU bailout will do is delay the inevitable. All they did was kick the problem down the road a bit to buy some time. Eventually the money will need to be paid back.

Just like the USA, nothing has been fixed. Throwing money at the problem without fixing what is broken is futile. Its like spending money to pump water out of a sinking ship without fixing the hole in the hull.

Originally posted by Agent_USA_Supporter

Oh and they also printed the money in US dollars!!

So anyone know how long will this hold?

They printed the money in USD??

You mean the FED gave them the option to borrow USD's quickly through new credit lines in order to give liquidity..

Also.. Adding money to the supply? No..

In a step that skirts EU rules barring direct central bank lending to governments, the ECB said it will conduct “interventions” to ensure “depth and liquidity” in markets. The purchases will be sterilized, meaning they won’t increase the overall money supply in the financial system.

Also, this money may not ACTUALLY be lent.. It is a mechanism that is now in place to lend.. Thats it. We'll have to see how much is lent over the next couple of years but it is mainly a mechanism for allaying Investor and speculator fears..

I do agree that this will only delay the issue for a couple of years.. But only if the global and EU economy doesn't pick up in that period of time.. If the economy begins to grow again, then the debts can be repaid.. If not, we're all screwed..

A trillion is a pretty sweet amount to default on lol

[edit on 10/5/10 by Dermo]