I knew this was going on but finally somebody is reporting it. We've been sending billions of borrowed dollars to the European Union to help bail them out during the banking crisis.
So let me get this straight; We borrow billions of dollars from China and Japan....we're paying millions a day in interest on that borrowed money....yet we're turning around and lending it to the European Union??? To date it looks like over $3 trillion dollars made it's way to Europe. What is our deficit? Somewhere around $3 trillion or more?
In what world does that make sense????
One would think we would lend it to them at a higher interest but do you think we're smart enough to do that???
European banks took big slice of Fed aid
By Robin Harding and Tom Braithwaite in Washington and Francesco Guerrera in New York
Published: December 1 2010 17:30 | Last updated: December 2 2010 00:12
Foreign banks were among the biggest beneficiaries of the $3,300bn in emergency credit provided by the Federal Reserve during the crisis, according to new data on the extraordinary efforts of the US authorities to save the global financial system.
The revelation of the scale of overseas lenders borrowing underlines the global nature of the turmoil and the crucial role of the Fed as the lender of last resort for the worlds banking sector.
However, news that banks such as Barclays of the UK, Switzerlands UBS and Dexia of Belgium borrowed billions of dollars at favourable terms from US authorities may further anger critics already enraged about the Feds rescue of Wall Street.
Were talking about huge sums of money going to bail out large foreign banks, said Bernie Sanders, the independent senator from Vermont. Has the Federal Reserve of the United States become the central bank of the world?
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