Eurozone Prestidigitation

I have continued my muse over my blog question of earlier this week: "Why Bailout Greece?"  When I came upon this New York Times graphic depiction (click to enlarge), it immediately occurred to me that the First Law of Printers Ink, "A picture is worth a thousand words" helps to answer the question. (For the time being we can safely ignore the law's corollary "1001 words is worth more than a picture") 

Despite the intent of the Maastricht treaty to preclude economic bailouts of individual EU member states, the economic ministers created a cross-borrowing scheme that makes it impossible to abandon any EU country.  The chart above shows the linkages of borrowing between and among the weakest members known as the "PIIGS."  The chart also shows that the stronger economies of Germany, France and Britain also are "joined at the hip" with the weak sisters.  So it is obvious that the international bailout in play is not a Greek bailout, it is a Eurozone bailout.

The question now becomes, "Why is the US participating in this bailout associated with the euro?"  The short answer is there is no reason why America should take any risk.  This post at Curmudeonly & Skeptical is straight to the point:

Why the hell must we give Greece $50 Billion (that we borrowed from China to begin with)?

We Don't.

While we root for Europe’s success, because a strong European economy benefits America, it’s worth nothing that the EU was created to be an economic competitor to the United States. Therefore, while it may be appropriate for the EU to pay for these bailouts, the same logic doesn't apply to America. President Obama should extricate the U.S. from the gathering storm of European bailouts which will only delay the fiscal reforms that are necessary for long-term recovery.

Even at this late hour, the Obama administration has considerable power to stop the U.S. from going down this ruinous road. Under current IMF rules, the United States needs only one other IMF member to oppose the bailout to defeat it. Therefore, we are calling on President Obama to publicly oppose the $145 billion Greek bailout, and refuse to participate in any larger European bailout which may be forthcoming.




Congressman Mike Pence (R-IN) has introduced legislation to stop U.S. tax dollars from being used by the International Monetary Fund for bailouts for European countries. Stating the obvious, this Republican sponsored legislation will be buried by House Democrats at the request of president Obama.

Obama's agenda to bring about one-world fascism will instead make America into a third-world country unable to provide for itself.  There is no economy on earth that can bail out the United States.