Saturday, May 8, 2010

Why are we bailing out Greece?


This has to be the most twisted thing I ever heard. The International Monetary Fund is going to give Greece a $140 billion dollar bailout. Since the United States is a member of the fund, part of that $140 billion will come from us. Our cut comes out to about $7 billion.
NY Post: US taxpayers will be helping to foot the bill for the Greek bailout, via the Interna tional Monetary Fund. And if the Obama administration doesn’t draw a clear line, Uncle Sam may soon be on the line for even more and larger European “rescues.”
The Greek government, with its high taxes and profligate spending to support large bureaucracies and social programs, is bankrupt. Its bonds have been downgraded to junk status. …
Concerned that the fiscal damage could spread throughout the EU and the world, other European Union members and the IMF have pledged $145 billion to bail out Greece. And since the United States is the largest contributor to the IMF budget, our government will be funneling billions of American tax dollars to Greece.
No one wants to see Greece fail — the economic stability of Europe is important. But US taxpayers have funded bailout after bailout, and our country faces a debt crisis of its own.
Our unemployment rate stands at nearly 10 percent. The public debt now stands at $9.2 trillion. The Congressional Budget Office predicts that America’s debt held by the public will reach 90 percent of gross domestic product within 10 years under President Obama’s budget. Without dramatic spending restraints, America is on a path like the one that led to Greece’s financial catastrophe. 
In these days of massive bailouts, giant stimulus packages and a new trillion dollar health care program, $7 billion sure does not sound like much. However, just like the bailouts, the stimulus and health care reform, the $7 billion dollars for Greece is money we don’t really have. Basically we are over spending to save a nation that over spent.  Has anyone in Washington noticed the irony in that?

What I would like to know is after we have spent ourselves into a whole, just like Greece did, who is going to bail us out? 

7 comments:

Just a conservative girl said...

I have been asking the same question for about a month now. The Germans and the French are obligated to bail them out, but the people there are having a hissy fit about it. Even the French think that the Greeks are too lazy and greedy.

So they went to the IMF and not ONE person in our government has publically said a word. I have called both my senators and they wouldn't/couldn't answer me.

Although, Krauthammer has written about this and he believes it is the right thing to do so it doesn't spread to Portgual, Italy and Spain.

But I am none to pleased.

Christopher said...

Add Greece to the list titled;" Too Big To Fail" and you will understand.

Gorges Smythe said...

"...after we have spent ourselves into a hole, just like Greece did, who is going to bail us out? "

Well, since the Chinese own us, perhaps they'll feel that we're too big to let fail.

LL said...

It's not really US Taxpayer money.

We had to borrow it with interest to pay it to "save" Greece.

Does ANYONE think that the Greeks will now straighten up and do things right?

Thingumbobesquire said...

A Classic Case Of Manipulation of Misplaced Rage
The NY Post headline has a clarion tone this morning meant to enrage its dupe readers by misdirecting their palpable ire at Greece. "We're bailing out Greece--but US taxpayers shouldn't be" it screams. What a joke. As I point out in my retort:

What all the articles about Greece conveniently fail to mention is that the bailout will pass right through Greece to the creditor banks. Just like the $100 billion for AIG wound up in the pockets of financier bucket shop fraudsters like Goldman Sucks. I say put these international gambling casinos derivatives through chapter 11. Force through an international Glass Steagall now! The solution: Go back to sovereign fixed currencies and issue national credits for large scale infrastructure projects, etc.


Or you can't fool all the people all of the time. Seems like almost every Post I survey these days has been despoiled by the vagrant dogs of the press.

Thorkil Værge said...

IMF is not spending $140bn. That is the size of the entire package. IMF "only " provides $30bn of that and you, the Americans are paying $7bn.

I agree with your point though, Americans should not bail out Greece, but neither should the Europeans.

USSE is coming :(

conservative brother said...

How exactly can our nation give Greece $6 Billion via the IMF when we don't have the money ourselves? Forget Greece, who is going to bailout the United States?

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