2 votes

Dr. Paul demands Timma abstain from European bailouts

Dr. Paul and other Republican "leaders" demand that Geithner clarify Treasury's stance on bailing out Europe and oppose . The IMF has asked for $600 BILLION to fund a European bailout fund. The letter makes it clear that the GOP wants no part of any European bailout.


While this is certainly good news, I question how much it matters when the Fed has shown it's both extremely willing and extremely able to debase our currency to prop up European interbank liquidity. I guess the difference would be the FX swaps the Fed is using are collateralized whereas any IMF bailout might be called a loan but we all know it would basically be a gift like nearly all IMF/World Bank "loans."

Even so, it would be extremely naive to think that Helicopter Ben, who has already lied to Congress about bailing out Europe once, won't resort to outright loans to the ECB if the FX swaps continue to be ineffective at increasing interbank liquidity.