Why is the European Union still intact? They are bankrupt, divided between the North and South, and have no plan to address any of their problems. But keep in mind, we are discussing the EU – not the United States.
As with any entity that is bankrupt and its debts are due, there are only three choices: default, borrow from some other entity or print more money (if you control a central bank). As outlined below, the EU has chosen to take money from the Federal Reserve to postpone the inevitable. A lot of money. Which the Fed now lists as an asset.
In the case of the US, the Fed has chosen to direct the US Treasury to print more money. To send to Europe. To solve the problem of their economic collapse. And expedite our economic collapse.
And for the Fed’s next trick, they will continue to prop up the stock market with their POMO policy.
David DeGerolamo
Fed Injects Record $100 Billion Cash Into Foreign Banks Operating In The US In Past Week
Those who have been following our exclusive series of the Fed’s direct bailout of European banks (here, here, here and here), and, indirectly of Europe, will not be surprised at all to learn that in the week ended February 27, or the week in which Europe went into a however brief tailspin following the shocking defeat of Bersani in the Italian elections, and an even more shocking victory by Berlusconi and Grillo, leading to a political vacuum and a hung parliament, the Fed injected a record $99 billion of excess reserves into foreign banks. As the most recent H.8 statement makes very clear, soared from $836 billion to a near-record $936 billion, or a $99.3 billion reserve “reallocation” in the form of cash – very, very fungible cash – into foreign (read European) banks in one week.
