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U.S. Taxpayers Paying To Bail Out Foreign Banks

U.S. Taxpayers Paying To Bail Out Foreign Banks

George Washington’s Blog
September 21, 2008

We all know that the Fed is trying to stick the American taxpayers with trillions of dollars in debt (direct or through inflation) to bail out the Wall Street robber barons.

But did you know that they are also trying to get you to bail out foreign gamblers?

An article in the Telegraph states:

“The Fed has also just offered another $125bn of liquidity to banks outside the US that are desperate for dollars and can’t access America’s frozen credit markets”

Another” $125 billion? How much has the Fed already given to foreign banks?

Why are American taxpayers who are already drowning in debt due to U.S. gamblers also being asked to also bail out foreign speculators?

This isn’t a pro-America anti-everyone-else post. If I lived in England, or Canada or Japan, I would resent being asked to bail out America, too.

 

Central Banks Offer Extra Funds to Calm Money Markets

Bloomberg
September 18, 2008

The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the aftermath of the 1929 Wall Street crash.

The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other counterparts can offer from $67 billion “to address the continued elevated pressures in U.S. dollar short-term funding markets.’’ The Bank of England, the Bank of Canada and the Swiss National Bank also participated. Several of them lent funds in their own currencies as well with the Fed adding a record $105 billion in temporary reserves.

Policy makers have struggled to revive confidence in markets this week as investors stockpiled money on concern more financial institutions would fail after the bankruptcy of Lehman Brothers Holdings Inc. and the U.S. government bailout of American International Group Inc. The cost to hedge against losses on U.S. government debt climbed to a record yesterday.

“There’s a complete lack of faith in the markets,’’ said Jim O’Neill, chief economist at Goldman Sachs Group Inc. in London. “There’s a lot of cash hoarding and people losing trust in banks, so the central banks are acting to relieve that. This might not be the last time they have to act.’

Paulson: Foreign banks can use U.S. rescue plan
http://news.yahoo.com/s/nm/20080921/bs_nm/financial_bailout_paulson_dc

Bailout Eligibility Expanded to Foreign Institutions
http://calculatedrisk.blogspot.com/..oreign.html

 


1 Comment so far
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You’re closing your eyes for the fact that it were for an important part non-US banks who bought the toxic waste in the first place. As a matter of fact, the complete US society, from banks to consumers, are living the American dream (read: Illusion) only by virtue of foreign debt takers.

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