American Taxpayers Looted To Bail Out The Euro

“The Federal Reserve late Sunday opened a program to ship U.S. dollars to Europe in a move to head off a broader financial crisis on the continent,” reports the Associated Press.

As we reported last time this program was enacted, the Federal Reserve refused to say which foreign banks had received an estimated half a trillion dollars in credit swaps. The program is unconstitutional under Article 1 of the U.S. Constitution which states, “No money shall be drawn from the treasury, but in consequence of appropriations made by law.”

In addition to the credit swap program being re-enacted, the IMF portion of a separate European bailout package amounts to around $287 billion dollars. Since American taxpayers represent around 20 per cent of IMF funding, they will fork out something in the region of $57 billion dollars which which primarily go straight to French and German banks, not to mention the billions more in transfers of wealth that will occur through the Fed’s credit swap program.

[link to gangstergovernment.squarespace.com]



The massive bailout, which the Associated Press described as "a bold $1 trillion rescue by the European Union," buoyed world markets, but is sure to be a very temporary fix. The IMF will contribute $325 billion to the pot.

Where does the IMF get its money? Well, some 20 percent of it comes from the U.S. taxpayers, in the form of what is called the "quota" or "subscription" by the United States. That means that roughly $65 billion of the IMF's new "loan" to the EU will be underwritten by the U.S. taxpayers, who are already on the hook for trillions of dollars to cover bailouts and past spending by our own government. Treasury Secretary Timothy Geithner and Fed Chairman Ben Bernanke definitely do not want the details of this latest bailout to be exposed by an audit, which would only drastically swell the ranks of the growing Tea Party movement and stoke the fires of the "throw the bums out" attitude that is already causing havoc for incumbents.