Ron Paul's Texas Straight Talk 2/15/10: Are US Taxpayers Bailing Out Greece?

http://house.gov/paul
http://CampaignForLiberty.com

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 percent of their gross domestic product and their public sector absorbs what amounts to 40 percent 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 all of the eurozone countries.

But there have been statements made by the European Central Bank to calm fears and give assurances that Greece will get the aid it needs. Details of agreements are not forthcoming.

Is it possible that our Federal Reserve has had some hand in bailing out Greece? The fact is, we dont know, and current laws exempt agreements between the Fed and foreign central banks from disclosure or audit.

Greece is only the latest in a series of countries that have faced this type of crisis in recent memory. Not too long ago the same types of fears were mounting about Dubai, and before that, Iceland. Several other countries (Spain, Portugal, Ireland, Latvia) are approaching crisis levels with public debt as well. Many have strong ties to Goldman Sachs and the case could easily be made that default could have serious implications for big US banking cartels. Considering the ties between the Fed and these big banks, it is not outlandish to wonder if the US taxpayer is secretly bailing out the entire world, country by country, even as our real unemployment tops 20 percent. Unless laws are changed to allow a complete and meaningful audit of the Federal Reserve, including its agreements with foreign central banks, we might never know if this is occurring or not.

This global financial crisis is a predictable result of secretive central banking and unsound fiat currency. Governments are entirely committed to this system of fiat money and fractional reserve banking for obvious reasons: it enables them to do what they love most, namely, spend hoards of money with near impunity. Without the limitations of sound money, governments will spend without limit. They will spend money to hire their cronies, pay off special interests, give out favors, create dependence and generally distract from the terrible job they do at their chief mandate, which is to protect the liberties of the people. Fiat money is a blank check to government, which is very dangerous, and we are witnessing the death throes of the system as the bills come due and the underlying capital is squandered away.

Because of our globe-straddling empire and lingering reserve currency status, perhaps no one has a more vested interest in keeping this system cobbled together than our own government and the Federal Reserve. The agreements that Iceland and Dubai and Greece have negotiated can amount to little more than kicking the can down the road, as their overall spending habits remain largely intact, fiat currencies are still legal tender and more debt is issued on top of unsustainable debt. The American people have the right to know if they are going to be the ones holding the bag in the end because the Federal Reserve 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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[ahrimangate]

Audit the Fed or I will need to order

Torches, Pitchfork, Ropes and Guillotines

[dlucas90]

I realize I'm preaching to the choir, but.........

Central banks + fiat currency = unelected central planners.

Spread the word!

[nalcow]

@SurvivalWithBushcraf The cash is pumped into the system through buying treasury bills. This means that the Feds prints out money out of thin air and buys the bills in open market operations to the tbills holder. The holder in turn has money to spend in real world. That's why this kind of bailing out causes inflation. It is correctly said as you point out that this operations causes the real value of currency to go down.

[aimeechrister]

testing

[aimeechrister]

testing

[SurvivalWithBushcraf]

It's very simple. Every dollar printed devalues the rest of them. But when banks get that dollar it has full purchase power because it has not yet met the market. So the banks get this strong money and spend it and then we get the left of dilluted dollar. But the funny thing is is that it was actually your money devalued so the banks could get even more.

My question is who has all that cash? China don't have that much. Banks went under and there was none to be found?

[SurvivalWithBushcraf]

Well said. If you run for office you have my vote!

[SurvivalWithBushcraf]

Yes you are 100% correct. But lets not forget that they will rob us blind and leave no wealth to this country. If they run it down to nothing everything is over. No Public trans, no food deliveries, no cops, no garbage collection, no imports, no replacement parts for all this chinese crap we have, no security for our childern.

[sirus10]

i say let the fed keep going the fed will destroy it self

[TSMPimpDaddyPain]

Right, tin foil hat because he suggests that we shouldn't allow a banking cartel that obeys no law to rule the earth.

[ashkenazimindcontrol]

anything is better then the suffocating american jooz media and federal reserve.

[niffs75]

"Let me issue and control a Nation's money and I care not who makes its laws". - Amsel (Amschel) Bauer Mayer Rothschild, 1838