"The biggest exposure could come from America's status as the single largest source of money for the International Monetary Fund.
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
"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.
"This is a lender of last resort function," he told CNBC. "With the dollar injections that the Fed has done, it's like giving a patient medicine
with really bad side effects." Ryding said the bad side effect in the U.S. has been inflation, which has picked up to 3.8 percent year over
Welcome back Carter. As if Obama's policies were not harming the economy enough, he is about to potentially backstop billions of European bonds,
flooding the global markets with cash that will ultimately lead to a significant rise in inflation. Fantastic, to buy Euros when the currency is
likely to drop like a stone, then be stuck with a massively inflated money supply.
Who benefits? Largely German and French banks who hold the majority of Greek, Spanish and Italian debt. The US taxpayer is about to bail out
Deutsche Bank and Societe General. Banks who, fully knowing that these economies were in dire condition, that they had consistently failed to meet
EU fiscal standards and yet issued more debt, bought that debt.
How about the French and Germans bail their own banks out?
Europe will be fine on its own. They need to sort out this problem and should that mean the break up of the EU or the dumping of the Euro for
national currencies or a two tier currency, so be it. Other than being supportive of a positive outcome, the US should play absolutely no role here.
These are the very banks who got large TARP loans as well and I did not see the Europeans in line to bail out US banks when they were lined up to fail
and many of them did.
If you are looking for a single reason not to support Obama, this is it. Having his two goons as the US vote on the IMF board, currently Mr.
Geithner with Bernanke as the alternative, both men who have done a miserable at guiding the US economy, hold this much power is outrageous, this is