Baseball91's Weblog

May 11, 2010

Using the American Express Card

They were careless people, Tom and Daisy—they smashed up things and creatures and then retreated back into their money or their vast carelessness, or whatever it was that kept them together, and let other people clean up the mess they had made. —F. Scott Fitzgerald, The Great Gatsby

If it was not bad enough when taxpayers are liable for the recent $23.7 trillion the Fed and Treasury handed out. Now comes word that the Federal Reserve Bank is participating in the rescue of the Greek government, along with the International Monetary Fund, the Japan Central Bank and the European Central Bank. The New York Times noted today that the sovereign debt crisis came on after an admission that the level of Greek debt was much higher than previously reported, due to bad management. The value of the euro, dropping from US $1.36 on January 21st to US $1.26 by the end of last week, was eroded by the debt issues of Greece, Portugal and Spain.

With the inability of these nations to share a single treasury, tax system or budgetary authority, the euro is largely a concept. A crisis, which centered seemingly on the recognition of the illusion of the currency, when those European countries lacking a coordinated financial backing for the euro, controlled by the independent European Central Bank much like the Federal Reserve, was resolved Sunday on nearly a one trillion dollar rescue fund to deal with the European debt problems.

While Americans argue about offering health care coverage to illegal immigrants, The Federal Reserve Bank was offering more than good words to these European political problems. This news is not going to play well in Peoria.

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1 Comment »

  1. Comment by paperlessworld — April 20, 2012 @ 4:53 AM | Reply


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