Instead of allowing the spendthrift states of the socialist European Union to finally face a much deserved day of reckoning, the Obama administration is reportedly considering bailing out the corrupt continentals.
According to a news report:
The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday.
“There are a lot of people talking about that. I think the European Commission has talked about that,” said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. “It is up to the Europeans. We will certainly support using the IMF in these circumstances.”
“There are obviously some severe market problems,” said the official, speaking on condition of anonymity. “In May, it was Greece. This is Ireland and Portugal. If there is contagion that’s a huge problem for the global economy.”
Just what America needs: flushing more money down a socialist toilet. This expanded bailout will solve nothing. It will delay the desperately needed reform of Europe’s unsustainable welfare states. Throwing them a financial lifeline allows them to delay reducing their spending. It’s like buying a morbidly obese person a gift certificate for McDonald’s.
In other words, America will be subsidizing European profligacy.
Setting aside for a moment the question of what impact the bailout might have, where is all this extra money going to come from?
It will come from you, whether through taxes, or through inflation, which functions as an invisible tax that punishes those who work hard and save.
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