What you need to know about the Greek bailout.
The domino effect – US bails out Europe – Europe bails out Europe – China bails out USA…..
You have America bailing out the larger European nations. The larger European nations are bailing out the smaller nations. All while China and others are bailing out the US.
1) To help cover the $1 Trillion European bailout, the Federal Reserve is “loaning” $54 Billion to Europe. To “loan” this money, it is being printed out of thin air. Some sources say as much as half of the money currently being spent by the Federal government is either borrowed from foreign nations, borrowed from the public, or printed by the Federal Reserve. Yet, the Obama administration says this $54 Billion is “safe” because it’s not really a loan but a “swap.” The money is said to be “swapped” for Euros. (see item 2)
2) The Euro is plummeting. Since the Greek “crisis” began, the Euro has lost 15% of its value compared to the US dollar. Since the US dollar is also losing its value compared to hard assets, the total decline of the Euro is hard to measure.
3) The Greek crisis resulted from two major factors. About 25% of employed Greeks hold government jobs. Greece is bankrupt from massive debts. Government entities were forced to make cuts and lay off workers. Government workers unions turned violent and rioted in the streets.
Now compare this to the United States. Estimates range from 15%-17.5% of all employed Americans hold government jobs. Many of the Unions for these employees are extremely left-wing and at least one, the SEIU, engaged in acts of group violence to suppress conservative speech at health care “townhall meetings” around the nation. The US is already deeply in debt, and Obama is increasing that debt at an unprecedented rate. Across the nation in every municipality, county, and state, we are seeing dramatic tax increases. Many states and cities are also cutting government jobs or reducing benefits to employees. Combine that with the fact that 40 million Americans receive foodstamps. A rapidly growing percentage of the US population either works for government or votes for a living (welfare). All while the US gets deeper and deeper in debt.