Are U.S. Taxpayers Bailing Out Greece?


". . .current laws exempt agreements between the Fed and foreign central banks from disclosure or audit."

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% of their GDP and their public sector absorbs what amounts to 40% 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 the Eurozone.

The European Central Bank made statements to calm fears that Greece will get the aid it needs. Details of agreements are not forthcoming.

Did our Federal Reserve have some hand in bailing out Greece? The fact is, we donít know, and current laws exempt agreements between the Fed and foreign central banks from disclosure or audit.

Several other countries (Spain, Portugal, Ireland, Latvia) are also approaching crisis levels with public debt. Many have strong ties to Goldman Sachs; the case could easily be made that default could have serious implications for big U.S. banking cartels. Considering the ties between the Fed and these big banks, it is not outlandish to wonder if the U.S. taxpayer is secretly bailing out the entire world, country by country, even as our real unemployment tops 20%. Unless laws are changed to allow a complete and meaningful audit of the Fed, including its agreements with foreign CBs, we might never know if this is occurring or not.

The American people have the right to know if they are going to be the ones holding the bag in the end because the Fed secretly put them on the hook for it. This knowledge would be a key factor in peacefully dismantling this immoral and unconstitutional system.

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