Latest Greek Bailout Just Cost US Taxpayers $780M

Zero Hedge  reports that the US has spent $780 million dollars to cover 17 percent of the International Monetary Funds payment for July and August interest to hedge funds holding Greek debt paper issued by European banks but later sold to speculators such as  John Paulson.  Yes, I know that all we have heard since April is that the US debt ceiling had to be raised to prevent American default on its own debts. The IMF directors have committed to the second EU bailout for the Greek government in just two years -- and our commitment to the monetary fund links us to liabilities not in US government control. What's more frightening is that the Greeks are not the only socialist nation in Europe with enormous debt that are "too big to fail." It is time to listen to Fred Sauer:

In another complete perversity, Obama’s socialist forefathers, who prescribed and implemented liberalism’s economic theory in Western Europe, had the foresight to provide a rescue facility for the new Europe. They would use the administrative procedures of the IMF to seize more and more money from the remaining market-based economies to subsidize those nations failing from liberalism’s excessive spending.

All the IMF elites need to do to get more American taxpayer money is to “have a board meeting.” But Greece is just the tip of the iceberg. Are there other EU nations that also might need to procure bailout funds? The instability of this situation will increase as interest rates rise in the future.

But no one listened to Senator Jim Demint (R-SC) when  he offered a bill in 2010 which would have forbidden the IMF from using US Taxpayer funds for the first Greek bailout tranche. DeMint's argument one year ago is familiar today:

"We haven’t even begun to seriously address our own economic difficulties, so it makes no sense to continue bailing out failing European countries,” said DeMint. “If we don’t reverse our reckless fiscal course, America will be the one in need of a bailout. We need to stop the spending, stop the debt, and pass a balanced budget amendment.”

The scary scenario about the immediate EU crisis is that America is at risk for over $50 billion in default payments.  Then there is the question as to whether of not the agreement to provide funds to the IMF is really debt as defined in the 14th amendment or under the debt ceiling limits.  Either way, we are spending money that could be used to meet domestic obligations.  Meanwhile back at the Mediterranean, they are rioting in Athens and withholding payment of government fees.  Greek socialists perfectly understand that  their economic dilemma is caused by Germans and Americans who are overcharging for interest and who fail to honor the entitlements that have always been available since the Marshall Plan began.