Will Fed Printing Press Try to Save Europe?

Bank Insolvency: Will Fed Printing Press Try to Save Europe?By Greg Hunter’s USAWatchdog.com 

You know things are heating up when the banks start with scare tactics.  In Greece, the bankers are in full court press to sway voters for next month’s election.  Reuters reported yesterday, “In a report released ahead of an election on June 17 that may determine whether the country stays in the single currency, the country’s biggest bank said the risk of Athens exiting the euro was no longer just a theoretical possibility, warning that the fallout from such a move would be dramatic.  ‘An exit from the euro would lead to a significant decline in the living standards of Greek citizens,’ the NBG wrote ahead of a vote which parties opposed to austerity measures that have kept Greece in the euro so far have a chance of winning.”   (Click here for the complete Reuters story.)  What would you expect from bankers who want the people to keep them in business as debt slaves? There is never any mention of pain for some gain.  In Iceland, the people voted not to pay back much of their sour debt and, now, the country is in a real recovery.  (Click here for more about Iceland’s comeback.)    

I am not saying the problem is not real—it is.  But what is the best way to fix it?  Isn’t it funny how bankruptcy and criminal prosecution are never mentioned as a way to clear away the deadwood and start anew?  Instead, the answer is always more money printing for even bigger bailouts anytime there is another approaching calamity.  For example, yesterday, this story from the UK featured comments from the Bank of England if the Euro falls apart.  It said, “A senior official for the Bank said the measures would ‘again play [their] part in mitigating the impact’ of Greece or other countries leaving the single currency.  The comments come after the head of the IMF suggested last week that British interest rates may have to be cut to zero if the economic situation deteriorates.  The Bank has already completed a quantitative easing programme, effectively printing more money worth £325billion and this may be extended again.”   (Click here for the complete story from The Telegraph.)

Most people have no idea just how big the bank insolvency problem really is in Europe and beyond.  Egon von Greyerz, who is a managing partner at Matterhorn Asset Management, said “trillions of dollars” will eventually be needed to save the financial system this time.  Yesterday, Egon von Greyerz said, “The bail out for Spain’s Bankia is now up to $25 billion in refinancing requirements, but that’s just the beginning.  We’re looking at country after country here where the dominos are falling.  The refinancing requirements worldwide are getting astronomical, and they will escalate at a faster rate.  I’ve said to you that I expect the requirements to be in the tens of trillions of dollars, and that’s just for governments.  If you add to that corporate debt, private debt, mortgage debt, you are talking about sums that are hard to imagine.”  (Click here to read and hear the complete interview on King World News.) 

Any big money printing bonanza must include the biggest currency creator in the world, and that is the Federal Reserve.  Will the Fed printing press try to save Europe?  The answer is a resounding yes.  Last night on Larry Kudlow’s CNBC show, former Fed Governor Randy Kruszner said this about the Fed/Euro swap agreement already in place, “They already have a big facility open with the European Central Bank (ECB) and so they actually don’t have to do anymore in order to allow more dollars to get there.  The ECB just has to ask for it and it will come forward and my guess is they’ll be doing a lot of asking.  I think, basically, they can get as much as they want.”   Instead of Mr. Kudlow asking why the Fed is bailing out Europe—again, he was gleeful as if this was the only thing that could or should be done.

Never mind the inflation or possible hyperinflation.  Just print, print, print all the digital money it takes to “fix” the problem.  According to famed investor and newsletter writer Harry Schultz, the “fix” is in, and it was decided at the recent G-8 and NATO meetings, recently, in the U.S.  Sunday, Shultz said on JSMinset.com, “President Obama is terrified that a financial meltdown of the Euro system will spill over into Wall Street and result in his losing the November elections. . . . The bottom line is that if Greece leaves the Euro, the contagion will spread overnight to Spain, Portugal, Ireland, and, perhaps, even Italy. So, the IMF, the Obama Administration and the ECB are all on board to further delay the reality of the financial and banking crisis through hyperinflationary measures.  The idea is that the situation will take many months to fully play out, and Obama and his re-election team hope that the system will hold together past the November elections.”  (Click here to read the complete Schultz report.)

There is no question the financial system is in deep trouble–again.  The only question is how long can the dollar remain the world’s reserve currency while it’s abused to bail out the Western world?

Comments
  1. freedom

    Greg.
    The shell game continues. What will happen to those playing games with millions of lives when the game stops,people get desperate,and seek to set the blame? Heads will roll is what history tells us.
    Not a good time to be the leader of this scam, fake, shell game.

    • Greg

      Freedom,
      The bankers and our the politicians have conspired to sell out the public. We are on a dire course. Thank you for weighing in here.
      Greg

      • nojoke338

        Don’t you mean THEIR politicians? Just follow the money to their campaigns.

        • Greg

          nojoke338,
          I don’t know exactly what you are refering to. I am not trying to be a wise guy. Give me more context please. Thank you.
          Greg

          • nojoke338

            The politicians are bought and paid for. That’s why I said THEIR politicians. Thought you knew this. The evidence to support this is the millions of dollars in campaign contributions from large corporations and the largest US banks.

  2. Mitch Bupp

    If the USA has reached our debt limit how can we print more money/bonds to pay for the ECB bailout if our credit card is maxed and Congress doesn’t raise the debt ceiling? I was reading something written by Dr. Albert Bartlett of U. of Colorado that you can not grow your way out an a hole by increasing population and economic growth because all of the things that go with that theroy in hand eliminate the positive aspects of that growth.

    http://www.albartlett.org

    http://www.youtube.com/watch?v=5DK4R-lQi4M&feature=player_embedded

  3. Joe

    So the powers that be press out more paper money once again,but after November,then what.
    America still has a debt of 15 trillion or more by that time.
    What will the value of the dollar be and where will the price of gold and silver?

    • Greg

      Joe,
      Long term, the prices of gold and silver will go much higher relative to fiat currencies. Jim Rogers just said we are about half way through a bull market in Au and Ag. Thank you for weighing in on this post. You are asking the only question worth asking.
      Greg

      • Mitch Bupp

        I was laughing today on http://www.cnbc.com they were talking about gold.

        http://www.cnbc.com/id/47631340

        still at $1565 oz

        • Greg

          Mitch,
          Look at what they are doing and how anyone could be long U.S. dollar for anything but a short term trade (this includes treasuries) is beyond me. Thanks for the comment.
          Greg

  4. George Too

    I wonder when we get the President gives the speech that the only way to save the economy is having a one world union and currency?

    • Greg

      George too,
      I hope that day never comes but when it does it will happen after a crash the likes of which the world has never seen. Thank you for the comment.
      Greg

  5. RUSS SMITH

    Hi!, Patrons Of USAWatchdog Et Al:

    The status bar earmarking socialism is that all land and all wealth belongs to the masses and not to individuals which can be translated to mean make everyone equally impoverished as debt slaves prominantly surfaced here in Greg’s great article.
    This process of impoverishment has been simplified here in the Unied States & all it required was to disinfranchise the American population from their Constitutional money as outlined in Article 1; section 10 providing for only specie gold and silver coins in circulation among us as our only means of monetary exchange. By the natural law powers noted within Gresham’s Law what remaining specie gold and silver coins that would have remained otherwise in circultion have all been driven out of circulation as we know, because we don’t see these coins in general circulation. This provides further leverages to indebt us all, because we have been left with only the Federal Reserve’s fiat, paper & ink, I Owe You Nothing, paper Federal Reserve Notes. A note by the way is a debt owed which here translates into we owe the Fedeal Reserve all the paper money, digital money, plastic money in circulation plus interest back to them but the Federal Reserve NEVER, EVER creates the interest that’s to be paid which means our debts to them can NEVER EVER be paid either dosn’t it? That forever indebtedness to them makes us their debt slaves doesn’t it from generatio to generation.
    Gresham’s Law merely states that when you have two sepeate currency units but each has a different internal or intrinsic value, that which has the greater internal or intrinsic value shall be hoarded or taken out of circulation. I’ve teased men with this by asking them, if they make $500 a week, would they prefer to be paid a $500 check, $500 in cash or 500 silver dollars? Of coarse the answer is the 500 silver dollars, because each silver dollar is worth more than $15 in paper which would translate into a minimum salary of $7,500 each week & rising as the price of silver rises. There’s around .73% of a troy oz. of silver in each silver dollar. The silver can be used for example by Eastman Kodak to produce more than 5,000 color photographs per troy oz. of silver or stretched into a fine wire to conduct electronic electrical impulses which wire is 50 miles per troy oz. In contrast to silver what can a Helicopter Ben Bernanke dollar perform outside of producing debt slaves out of each and every one of us who must continuosly pay higher prices for everything we need? By using Ben’s corrupt money we are siding with the forces that are aligned with socializing our entire Nation impoverishig our middle class and siding against our Constitutonal option to opt out of fiat money and transform our economies of scale through the use of specie gold and silver money as mandated in Article 1; Section 10 of OUR US Constituion which would automatically kill their inflationary policies plus put Helicopter Ben Bernanke automatically by natural laws out of business forever and ever….Amen!

    RUSS SMITH, CALIFORNIA
    resmith@wcisp.com

  6. Don Johnson

    Hello Greg: Of all the info I receive no one really talks about the possible solutions. For our monetary system it is obvious.As soon as there is a downgrade of the American economy and a default then the monetary system as we know it will be gone. What will replace it? It will be made to seem that America will miraculously come to the rescue however the solution will be the final step to strip the wealth and Freedoms of possibly the whole world. The reason protect the wealth of the wealthy. Most will be on board because desperate measures require desperate solutions. Does history have a pattern? Yes, and not that long ago! Germans are still singing the praise of a madman who was able to give them financial stability and jobs. In Germany they say they need a little Hitler The price that Hitler asked though was the loss of freedom and the destruction of a generation. Don’t think that it will not happen in a corrupt system with weak leadership. We have all the building blocks in place. All we need is the emergency and the leader that can invoke his vision.
    No one want to hear this though!
    Don

    • Greg

      Good comment Don. I am afraid I wholeheartedly agree with you.
      Greg

      • M SMITH

        Came across this & have not finished reading it yet, but it is a who’s who of the past & present elites & their plan to steal the worlds weath, seems as they have done a damn good job at doing it also! http://silverstealers.net/tss.html. It make take me more than a week of long nights just to read & follow all the links to all the articles related to just how they took these plans & made them work, just like todays bailouts of every one who should have failed & we have been carried them on our backs & it’s time to throw them off! I hope peole smarter than me will read this & pass it along to those who will also throw these scum bags off our backs!

        Greg, also another great piece of truth, how much longer befor the whole system fails? At this rate very soon & then the living hell will become a normal day!

        I fear for any one who support freedom,property rights & the Constitution! That is us, GOD Bless all!

        • Greg

          M Smith,
          Before the failure look for lots of money printing– as in trillions.
          Greg

  7. AndyB

    In order to keep alive the NWO totalitarian agenda, the Controllers have to print. The Eurozone was always envisioned to be the first step in having corrupt politicians (backed by the banking cartel) to control a region by the abrogation of national sovereignty. The North American Union was (is) the next phase, and is incrementally ceding US sovereignty. Few are aware that both Mexican and Canadian law enforcement can now legally enter the US and arrest, detain American citizens.

    So expect trillions of printing by at least the ECB, the FED and the BOJ. If the PBOC joins, then it will, most definitely, ensure an eventual hyperflationary outcome. For some reason, though, I think the Chinese will pass.

    • Greg

      Thank you for adding to the content of this post AndyB.
      Greg

  8. Chuck

    Greg, Of course they will try to bail out Europe, they did bsfore, & will again, (they think it’s all their money, ( the banksters ), & will not hesitate), no matter what the consequences for the American people are. The only real fix is the Iceland fix! Stiff the bankers! And the sooner the better. Also as far as the dollar remaining the world’s currency, that is practically all over already, China, India, Iran, & several others are already finding every means they can to trade without using the dollar, & this process can & will only accelerate in the coming weeks & months. In short, the dollar’s days are numbered, & we will have to make some BIG adjustment’s to our way of life because of this. Go gold, Got silver? Chuck

    • Greg

      Chuck
      Everyone should be asking themselves those same questions.
      Greg

  9. Roger Boswarva

    Greg,
    Love your work. However there is a little correction one what is conveyed above on Iceland. It wasn’t “Iceland’s debt” that the Icelander’s refused to pay, but instead the debts of their commercial banks who had borrowed recklessly overseas at unreasonable rates to fund a real estate binge at home. It was not Icelandic sovereign or government debt. The Icelanders simply did the honest thing: declared the the banks bankrupt, “nationalized” the banks in order to maintain their banking system and bit the hard bullet of a huge drop in money supply.
    By the way, it is to be noted criminal charges were brought against a former Prime Minister and certain bankers of the issue. (Though the charges were brought against the wrong ex-PM . . . it does show those folks have their heads in the right place!)
    Roger

    • Greg

      Thank you Roger for adding that detail I left out. Yes, Icelanders do have their heads in the right place!
      Greg

  10. LadyLiberty

    To top it all off

    When The Derivatives Market Crashes (And It Will) U.S. Taxpayers Will Be On The Hook

    http://theeconomiccollapseblog.com/archives/when-the-derivatives-market-crashes-and-it-will-u-s-taxpayers-will-be-on-the-hook

  11. freedom

    Greg.
    The 3 greatest words a man can say in this time is…END THE FED.

    • Greg

      Freedom,
      Amen to that!
      Greg

  12. Dave

    Hi Greg:

    Having the status of “Reserve Currency” gives a country unbelievable power. I am not sure how many people realize just how big a stick this is.
    The US will not give this up easily for to lose that status would be a enormous blow to it’s standing both economically and as a world super power.
    My fear is what the US is prepared to do to keep the dollar as the reserve currency?
    Many of the options are not pleasant

  13. art barnes

    Greg, helicopter Ben will print until the middle class has become the american buffalo, which is really the plan all along. The middle class is the only people who could oppose the Fed’s & its elite’s entourage, Wall Street, the bankers, and the politicians. The rich already are on board, the poor can’t stop anything, which leaves the lonely middle class the target as the last opposition. How can the printing devalue the middle class into the working poor class you might ask? – simple, wages, if any, holding steady while inflation takes it toll, its just a matter of time. The printing which your article discusses will be massive, which will make inflation rise accordingly securing the destruction of middle America as we know it. Sorry for the bad news but that is were we are. Nothing will stop the Fed from printing, as we have always known, they are not subject to any American laws although I predict that they may be subject to the laws of human justice; meaning, when people are hungry the currency and laws be damned. This is where we are heading if the FED bails out the banks again (which it has already started).

    Also, the people of Greece currently have run away inflation, high unemployment, loss of income, what does staying in the European Union offer for them? The people of Greece would be better off going back to the Drachma and rebuilding from scratch. Remember, the only people in Greece which won’t be better off is the bankers and the elite.

    Lastly, your blog will be acknowledge someday for its steadfast truth against the storm of propaganda of CNBC and the rest of the elite.

    • Greg

      Art,
      Thank you for your kind words and support!
      Greg

  14. ManAboutDallas

    The “bankrupcy and clear the deadwood” option simply isn’t available and never will be. Why ? Because of the trillions in derivatives. The first major bankruptcy – or attempt at it – would kick the chair out from under the whole world’s economy and it would be hung in an instant.

    It truly is a painted corner from which there is no escape, except to inflate to oblivion, so that’s the path of least resistance that will be taken.

    • Greg

      Man,
      I am afraid you are correct. The real question is how long will the U.S. dollar retain its reserve currency status? We are all going to find out sooner than later. n Thank you for the comment.
      Greg

  15. Liquid Motion

    The world’s monetary system as we know it, is in its death throws.
    The charade has gone on far too long.
    Theft by stealth. Unregulated gambling. A judicial system that endorses loss making and ensures socialism of the highest order.
    Crony Capitalism.
    The future is set in cement.
    Suffering will be widespread. Dislocation of millions will be the norm. This is a tragedy unequal in history.
    My fear is that the oppression that will ensue for maintenance of civility, will become destructive in terms of deterioration of human rights.
    The Elitists gambled….and they have failed miserably with their social experiments.

    • Greg

      Liquid Moon,”You said, “This is a tragedy unequal in history.” Spot on man and most have no idea what is coming. This will add to the misery because there will be little preparation from the masses who are being told the economy is getting better. It is in the process of spinning out of control. Thank you for weighing in. By the way, I loved the entire comment.
      Greg

  16. Jay

    Ah such a gay time in the world economy. Kind of interesting how a nation rejects the moral standards that God has set up, it laughs at the laws of “The Almighty” and then it is all over before folks can figure out what went wrong. No pieces left to pick up, no happy faces to bring hope and encouragement and no future to look forward to. Only anguish, want and loss for those left alive. The Bible says that men will seek death in those days and it will escape them, but still they will not repent of their sin and turn to God. And speaking of hyper-inflation, man seems to love money more than God and so God may just see to it that man is rolling in money. Of course it will be worthless, but he’ll have plenty of it if the fed rolls out the presses. Be not deceived, God is not mocked. Whatsoever a man soweth, that shall he also reap.

  17. nathan

    This is becoming comical to me . I call it the “Greek Drama” and/or “Greek Drachma” …It’s like a two and a half year sitcom that won’t end . Remember when it caused 600 point swings in the stock market and the world was going to end if Greece dropped out of the Eurozone ? Just two days ago the puppets at CNBC came out and said it’s really not that big of a deal . Now once again its a big deal . And they act like Spain is a surprise issue ? Guess what ? Italy and Portugual will be after the Spanish fiasco . It’s like a slow motion train wreck . As for our Fed stepping in , of course they will . Citibank and Bank of America have huge holdings of European debt . So once again the taxpayer will inadvertently bail them out . (The beauty of it is hardly any Americans will ever know or care ) .Keep up the great work Greg i love your website .

    • Greg

      Nathan,
      Thank you for the humorous but serious comment.
      Greg

  18. Brian O.

    Greg,

    In your opinion, how do farming and ranching in America look as businesses as these debt/currency/asset crises unfold?

    • Greg

      Brian O.
      It is going to be one of the very best businesses to be in for decades. If you already have the land, you can probably find a way to make some money or at the very least feed your family.
      Greg

  19. Jan

    Ireland votes tomorrow:

    http://www.spiegel.de/international/europe/irish-engage-in-intense-debate-over-euro-zone-fiscal-pact-referendum-a-836006.html

    I wish every Irish voter could read this aticle on Iceland’s recovery. There will be pain, but there is also hope. Piling more and more debt to save the bankers and elitist is will not prevent the end, only delay it a bit longer. I hope the Irish end the stranglehold debt on their country.

  20. American Patriot

    Very good article and right on point. I would like to suggest to Don Johnson (commented above) the possibility that things may be different this time than last. There may at least be a place of refuge this go around. This time we have the most powerful tool the world has ever known at our disposal. This tool is capable of educating the masses as to the true cause of their afflictions. We (readers) should spread what we have learned here, using this tool, to every one we know to help with this endevour. It also has the power to make anything owned by one individual and desired by another anywhere in the world liquid, In this capability lies the possibility that what previously constituted money may be changing. Anything can serve many of the functions of money when a buyer can always be found. If Fiat currency systems cobbled together by wannabe totaliarian governments of the world fail to provide the necessary function of account to facilitate trade due to hyperinflation and total destruction, then of this tool will spring that necessary function.

  21. Tyler C

    The simple answer: It won’t and it shouldn’t.

    • Greg

      Tyler,
      But they are going to and most here thing that is wrong, very wrong. Thank you for weighing in.
      Greg

  22. Toni Lovergood

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