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U.S. Taxpayers to Bail Out Europe

Discussion in 'BlackHat Lounge' started by boobooboy, Sep 18, 2011.

  1. boobooboy

    boobooboy Regular Member

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    The U.S. is coming to Europe's financial rescue.

    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. In the short run, those transactions won't have much impact because the central banks are simply swapping currencies of equal value. If the move helps avert a wider crisis, it could help spare the global economy from another recession.

    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 year.

    Fed policymakers meet next week to decide whether the flagging U.S. economy needs another round of easy-money measures that could include buying more Treasury bonds to push more cash into the financial system.

    http://bottomline.msnbc.msn.com/_ne...taxpayers-could-be-on-hook-for-europe-bailout
     
  2. kirkonpolttaja

    kirkonpolttaja Senior Member

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    Only problem is that greek does not co-op... i hate it when other countries HAS TO suffer when someone screws up :(
     
  3. jgeeked

    jgeeked Regular Member

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    Because im guessing some countries owe more than others, and lets face it if you borrowed me money, you'd still want me to pay it back regardless..
     
  4. toyo

    toyo BANNED BANNED

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    its not a bailout per se, its just an exchange of currencies on their nominal value.
     
  5. adhept

    adhept Junior Member

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    Because the bulk of the debt is owed to ourselves!

    When governments want to borrow money, they print government bonds which people can buy to loan money to the government and get it paid back with interest. The higher the risk of the government not paying, the higher the interest rates they need to offer to get people to buy them and invest.

    The largest buyers of these bonds, are the pension funds, investment funds, savings and stock portfolios that half the people in the world have their money in. Simply cleaning it all off and not paying - you screw every single ordinary person who's trying to save a little for a rainy day.

    This is why half the world is trying to cause as much inflation as possible, too inflate away their debts. It's essentially stealing from anyone who's dared to save and practice financial responsibility to bail out the feckless who are up to their eyes in shit.
     
  6. neu009

    neu009 Jr. VIP Jr. VIP Premium Member

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    nothing too big in my opinion. maybe payback time for all the money lost from the crisis when europe had too much money in US banks etc.. the us system just needs to change.how can a bank determine you will pay back ONLY by credit score with any proof of income ?

    credit != having money but I guess it remains the same. of course the crisis in europe is unfortunate considering the damn greeks dont cooperate. its those countries that pull it down for all of us but well what can you do. still dont see the euro dropping below the dollar anytime soon. still some way to go for europe and the us to prosper again ... although you can tell it must have gotten better as all the airlines increased their prices. just thin of the last 2 yrs damn if i would have had the time then you could have travelled the world for peanuts
     
    Last edited: Sep 18, 2011
  7. J1ZZ@

    J1ZZ@ Newbie

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    wait wait wait, how can the united states bail anyone out when they need a bailout from china themselves? thats bad news man
     
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  8. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    When you lend money to someone, you know you may not get paid back. Lending is not a risk free business. ;)
    Greece totally over-borrowed and now they may prefer to default rather than have 3 generations work in hunger economy to pay the dept. Which is not a good solution for them either because it means total chaos for a period after the default, lives lost etc.
     
  9. dowser

    dowser Power Member

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    Guys, read between the lines! It's the beginning of the end of the current banking system and of course they won't go without a fight, so it will get worse before it gets better, I'm afraid.

    It's not Europe against America, it's the elite group of assholes that are controlling the world's economy - basically playing puppets on the string. Sad but true...

    Interesting times we live in!
     
  10. IamNRE

    IamNRE Jr. VIP Jr. VIP Premium Member

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    Funny thing is if everyone in the world decide to pay all its debt, the world would still need more money because of the interest.

    The only people that money are the bank owners.

    In short... we are all f@Cked.....

    Wazzz:yo:up!
     
  11. OldFatGuy

    OldFatGuy Regular Member

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    Foreign countries only hold about 33% of the US debt. The rest of it is held by the US public itself. Of that 33%, China holds around 27%, Japan is second at around 21%. So in reality, China holds maybe 9% of the total debt. Although, that 27% number is via treasury bills and I'm not sure what % of total debt is actually just in treasury bills.
     
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  12. J1ZZ@

    J1ZZ@ Newbie

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    I guess it just seems silly to me when the United States is in the midst of a chaotic situation itself it is on the hook for the Euro, just doesn't seem to make sense. But hey, at least the UK didn't buy in to that fake inflated currency created by none other than Goldman Sachs, and we all know they're a bunch of honest fellas. ha
     
  13. Roparadise

    Roparadise BANNED BANNED

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    The global finance situation its both a bit of corruption and not realizing that there is now competition for taxation. How can Greece think they can compete for money when almost every single nation near them has a much lower tax rate. Bulgaria 10% tax,Albania 10% tax,Montenegro 9%,Cyprus 10%. As for the massive spending,it is mostly from corruption no single nation is exempt from corruption each just has its owns style,with the players in same legalizing it.

    The idea of the EU is great,but its too much trying to be like the United States. There was no need for having the euro when there is electronic payments now.
     
    Last edited: Sep 18, 2011
  14. J1ZZ@

    J1ZZ@ Newbie

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    Thats good to know thanks
     
  15. Roparadise

    Roparadise BANNED BANNED

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    The whole idea of government's getting into massive debt was by an English economist who was an advisor to FDR. WWII was the start of the government getting into selling bonds to pay for things.
     
  16. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    How are electronic payments related to currency? Euro was not created to help ease transactions. :D

    Anyway, if you think national currency is all roses, just check your history on currency wars to see how fun it is for the taxpayers.
     
  17. bigeazy

    bigeazy Regular Member

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    Hey OP, I think the title of your post should say:

    "Chinese Government bails out United States which in turn bails out Europe"
     
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  18. J1ZZ@

    J1ZZ@ Newbie

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    hah, sad but true
     
  19. 420friendly

    420friendly Jr. VIP Jr. VIP Premium Member

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    Ron Paul says the average American has to work for 6 months before you even start working for your own money as the first 6 months goes towards taxes... that sucks work half your entire life for the government? booo hissss
     
  20. Windmill

    Windmill Supreme Member

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    US may help bail out some in Europe. But China helps bail out the US.