The IMF is delighted to announce that it just approved a €3.2 billion disbursement of cash for Greece, its fifth, as part of the €12 billion in money that Greece needs in order to continue operating in the months f July and August. And just for what purpose will this money be used, one may ask? Well, as explained a few weeks ago, in Greek Math: €12 Billion In, €18.2 Billion Out the entire amount will be promptly recycled by global financial institutions in the form of debt maturities and interest payments, which amount to €18.2 billion in the months of July and August. Simply said ECB, EU and IMF money in, money owed to bankers out. The kicker: 17.09% of the money coming from the IMF, comes from, that’s right dear US taxpayer, you (and since 21% of the quota contributions allocated to the IMF are deemed “non-usable”, the actual number funded by the US is likely much higher). But this plot has a bonus kicker: as we reported on Wednesday, the actual Greek debt is no longer owed by European banks to the extent it had been previously expected: a development that threatens to scuttle the entire second Greek bailout plan as currently proposed. So as the banks have been selling Greek debt, who has been buying? Mostly hedge funds, such as everyone’s favorite John Paulson. So to recap: US taxpayers have just paid out about $780 million of the $4.6 billion in order to fund interest owed to… hedge funds.
Problem is not who owns the debt, problem is that US participates in this Progressive Globalist IMF system at all.
Debt could be owned by Chinese, hedge funds, Martians,… it is still debt. Someone spent money they do not have. Just because it is now owned by hedge funds does not mean that money involved suddenly turned unreal. If anything, hedge funds are saving backsides of various national banks. They should profit from it. Proper way is not to steal from people who didn’t spend the money through IMF. Proper way is to reposes Greek land, industry, infrastructure,… anything in Greek Govt. hands.
#2 – I loved reading that. Thanks for sharing.
The other, unasked, question should be were is this US money coming from, if Congress currently can’t even agree on raising the debt limit, or raising taxes? Seems like there’s all this loot in reserve, that can’t be touched by citizens, for domestic spending projects and programs. But is locked in for foreign aid, the military budget, the space program, and various financial bailouts. The US budget leaks money like a sieve. we don’t need to raise anything. Just plug up all the damn holes, and shut off all the drainage valves. Go back to some Nationalist spending, and stop all the Globalist spending.
Shut up slave.
>Go back to some Nationalist spending, and stop all the Globalist spending.
It is nationalist spending, US bank lends Greece money it knows it will never pay back at 20% interest. US government then pays the interest to the US bank for ever.
US taxpayer money goes from poor US tax payer to rich US hedge fund manager – how much more nationalistic can you get ?
Let me get this straight. Our beloved lack witted nin-com-poop President and his con artist supporters have just ripped off the American people for $780,000,000 to pay interest on a loan the Greeks are eventually going to have to default on while screaming about the need to increase our national debt and the fact the we don’t have enough money to cover our own bills?
I know exactly where I want to plant a steel toed work boot!
given the mindless BS surrounding and consisting of the “Debt Ceiling” I don’t know why Obama just doesn’t declare it to be violative of the US Constitution and save himself/Dems/We the People from Puke Crap now and into the future.
This issue should be resolved in a considered budgetary process.
Lying back stabbing hypocritical bastards can now be writ large on the Puke Label. The Debt Ceiling is nothing more than a summing up of what was agreed to all along at each step of the way.
Wake Up America. Pukes are trying to send you to the poor house but they can’t do it without your vote.
This Greek debt thing is a really curious thing. Their citizens scream for an audit – they may be justified.
The new military spending for Greece includes the latest planes and even nuclear subs. If Greece has received all this stuff where is it? Are they as a significant military power as these purchases suggest?
Recently I came across another interesting point. Ecuador. Did they not recently kick the IMF out of the country for bogus debts charged to the country. Ecuador did an audit going back to 1960 and found the debts very questionable.
After an audit, it seems Ecuador had no problem writing off a majority of IMF debts. It seems that some of the players from Ecuador went directly to Greece.
I think there is something much bigger to the story of Greek debt and its not been acquired from the running of the country.
If there is any truth to the matter Greek debt may qualify as odious just like Ecuador’s and Iraq’s were. This would have a tremendous effect on the markets.
#8, first, you would have to explain why you think that the debt limit is a violation of the Constitution… or more importantly, why you think a court will.
The power to “borrow money on the credit of the United States” exclusively resided with the Congress, and the 14th Amendment argument is quite a stretch because the lack of ability to pay a debt says nothing about the validity of that debt. The debt is still valid, and the governemnt will never claim otherwise – we just can’t afford pay it.
#10
“The debt is still valid … we just can’t afford pay it”
Interest payments on debt account for about 5% of the federal budget. The world isn’t ending quite yet.
This debate about expenditures and and revenues should be handled within the regular budget process. Breaking the debt ceiling from the budget is foolish nonsense.
The danger the US faces with debt is overstated, and more a factor of how we use debt markets than how much debt we have.
Good article on the economist, that communist propaganda newsprint.
http://economist.com/node/18928600
#12
“the economist, that communist propaganda newsprint”
Yeah, it’s that big RED box around the name. Should have seen that one coming a mile off, I hate it when they sneak past. 🙂
Obama should argue to punt on procedural grounds. Not the time for this argument. I’ve castigated Obama for constantly playing the reasonable adult, which is condescending and oversells his ability to get results.
This is exactly when you’d want to do that. The unmistakable scent of BS is all over the debt ceiling.
Placating the GOP now only means they will come back to the next budget with momentum. Democrats would be happy to play a momentary advantage out a few decades, but the GOP will be maneuvering deep into the season. The worse the product gets the more strident the pitch.