Monday, February 22, 2010

Is The Federal Reserve Bailing Out Greece?


Last week we were reminded that ours is not the only country suffering from severe economic turmoil. The Greek government is the latest to come close to default on their massive public debt. Greece has insufficient funds in their treasury to make even the minimum payments that are now coming due. Their debt level is about 120 percent of their gross domestic product and their public sector absorbs what amounts to 40 percent of GDP. Any talk of cutting costs and spending is met with violent protests from the many Greeks heavily dependent on government payments. Mounting fears of default have sent shockwaves through their creditors and all of the eurozone countries.
But there have been statements made by the European Central Bank to calm fears and give assurances that Greece will get the aid it needs. Details of agreements are not forthcoming.
Is it possible that our Federal Reserve has had some hand in bailing out Greece? The fact is, we don’t know, and current laws exempt agreements between the Fed and foreign central banks from disclosure or audit.

More Here...

2 comments:

  1. lol, no comments here most likely because Americans don't care about "other" countries or don't see any link between themselves and "other" countries.

    ReplyDelete
  2. The absolute figures of the Greece, Spain, Portugal, Ireland and Greece are not that much compared to the U.K., the U.S.A. or Japan.
    About 8.000 billion Euros (10.800 billion dollar) for all countries together
    The E.U. can take this.

    Who will bail out the U.K. and the U.S. when they are defaulting?

    ReplyDelete

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