Tuesday, May 11, 2010

Obama Muscled the European Union to Bailout the PIIGS

It took American muscle to get the Germans to cough up big bucks to bailout the Greeks. President Obama, no doubt urged on by his bankster controls, put in the calls to European leaders, including Angela Merkel and Nicolas Sarkozy, to bailout BIG. NYT has the mad details:

President Obama had just flown into Hampton, Va., Sunday morning to deliver a commencement address. But before he donned his silky academic robes, he was on the phone with Chancellor Angela Merkel of Germany, offering urgent advice — and some not so subtle prodding — that Europe needed to try something big...Mr. Obama told Mrs. Merkel that the Europeans needed an overwhelming financial rescue to end speculation that the euro — and European unity — could crumble.

“He was trying to convey that he knew these were politically difficult steps that the leaders there had to take, that he had gone through them as well,” said one senior administration official familiar with the conversation. “And that, from his experience, trying to get out ahead as much as possible was the right way to go.”

That call was part of what a senior Treasury Department official called “one long conversation” with European leaders, who over an extraordinary weekend of late nights and early mornings overcame German resistance and agreed to a wholesale expansion of the bloc’s political and financial mission. Bending the rules, they backed the stability of all 16 countries that use the euro with loan guarantees adding up to nearly $1 trillion.
You just know some heavy bankster money had to be on the line somewhere. I wonder how much input came from President Obama's favorite banker, Greek-American Jamie Dimon?

But apparently Obama's silver tongue was not enough, As NYT put it:
Washington was also ready to help, in a limited but crucial way. The Federal Reserve offered to swap euros for dollars, easing pressure on European central banks, which were bleeding dollars.
NYT did not inform their readers of how "limited" this swap might be, so it is difficult to know for sure. However, according to the NY Fed, the last time the Fed launched currency swaps during the current financial crisis, the Fed pumped out $560 billion worth.

1 comment:

  1. Euros need to learn how to say GFY !
    We do too.
    Based on articles like this it seems a VAT will be forced on us.
    It's all about the banksters.