It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Shock and Awe, Obama-Style
As the New York Times reports, after initial efforts by the European Union to contain the Greek welfare-state collapse failed, “United States officials began talking to their counterparts about an American concept: overwhelming force.... Aware that the ‘wolf pack’ markets, as the Swedish finance minister called them, had dismissed their every move so far as too little, too late, some of Europe’s leaders knew they had to act in a big way — to ‘shock and awe’ the markets.”
Enter President Obama, who, lacking all constitutional authority to do so, put American taxpayers on the hook for an unspecified amount of money — the total bailout package could go as high $1 trillion, made up mainly of a bond offer by the European Union. The U.S. guarantee and the fact that we are swapping dollars for euros to stave off inflation in Europe are the real “shock and awe” in all of this — otherwise, the plan basically rests on many EU countries, which are financially hurting in their own right, providing loan guarantees to countries that are even further overextended (not that the United States is in a much better fiscal position). Obama’s plan, which he pressured German Chancellor Angela Merkel into accepting (Germans remember the hyperinflation of the Weimar Republic that paved the way for Adolf Hitler), is to have the Federal Reserve provide credit for the European Central Bank so that it can purchase Greece’s debt without having to inflate the Euro beyond all measure. Of course, since the United States is also drowning in red ink, the Fed will have no choice but to inflate the dollar in order to hold up its end of the bargain.
Greece is only one of the European welfare states teetering on the brink of collapse. Spain and Portugal could easily be next. After that, who knows? Will the violence in Greece begin anew, and will it spread to other countries, including the United States, as their welfare states implode?
Read more: The New American
Originally posted by DeathShield
Call me crazy but this is a BRILLIANT move on obamas part. The EU will be indebted to us for one trillion dollars. We will have massive political clout over them just as china has with us right now. Of course to be fair one trillion dollars is not much when talking about super powers who's GDP's regularly top 10+ trillion. Still it is no small slice of cake either... It's going to be interesting to see where this goes.
Originally posted by zerbot565
instead of just trolling around maybe the U:S should start and take responsibility for what they do around the world
to me it seams that in both instances U:S was directly involved in bring them two nations economy down so why should you not pay for the damage youve done,
Originally posted by zerbot565
reply to post by FortAnthem
i dont see how this is a european bail out more then that both thouse nations are located in europe , , if anything its a greece bailout and an icelandic bail out, we are still sovereign nations here you know.
Obama’s plan, which he pressured German Chancellor Angela Merkel into accepting (Germans remember the hyperinflation of the Weimar Republic that paved the way for Adolf Hitler), is to have the Federal Reserve provide credit for the European Central Bank so that it can purchase Greece’s debt without having to inflate the Euro beyond all measure.