The U.S. is coming to Europe’s financial rescue.
So far, America’s role is fairly limited. But if thecrisis continues to grow and the U.S. takes on a wider role, U.S. consumers and taxpayers could feel a bigger impact. The biggest exposure could come from America’s status as the single largest source of money for the International Monetary Fund.
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.
Continue reading ‘US Taxpayers Could Pay For European Bailout‘ at Global Freedom Technology Firm.
iSkin Premium accessories for iPhone, iPod, Blackberry, Mac, and PC
Related articles
- US taxpayers could be on hook for EU bailout (bottomline.msnbc.msn.com)
- The Next Bailout: BofA Moves Derivatives into Insured Institution (news.firedoglake.com)
- Breaking => The Debt Ceiling Was Raised 117 Times Since The $700 Billion TARP Bailout. Now Alone At An Astronomical $12.8 Trillion. (politicalvelcraft.org)
- Economist vs. Pizzaman (lewrockwell.com)
- France Defends Its Credit Rating After Moody’s Warning (nytimes.com)
- Greek debt inspectors say bailout payment likely (cbc.ca)
- Fed & BofA Dump Billions in Losses onto Taxpayers (ritholtz.com)
- Jon Huntsman: ‘Too Big to Fail’ Is Simply Too Big (online.wsj.com)