We have our own problems in the U.S. to deal with. Our national debt, which has had its limit raised twice in the past year, is pushing $15 trillion and rising very quickly, with no top in sight. We simply cannot foot the bill for Europe, or for anyone else for that matter. We can’t pay our own bills. This situation would be like someone who is deep in debt borrowing even more on a credit card, so they can loan someone else money to pay their bills. We just don’t have the capacity to borrow another $600 billion to help Europe, period.
As I have written many times, the IMF and World Bank are really just fronts for distributing U.S. funds to other countries. They can muddy the waters surrounding the process, adding a hundred steps in between the U.S. providing the funds to the IMF, and the IMF then distributing (our) funds to these other countries, but at the end of the day, we are paying the bill. We just can’t do it anymore.
We knew this was coming. As soon as countries across Europe began having financial problems, I knew (and I wrote) that the IMF would be asked to help (read the U.S.), even though these same European countries know all too well that we are having massive financial problems here at home. In the past, our economy was strong enough, and our outstanding debt manageable enough, that we could help. This is simply no longer the case. We are tapped-out. We are coming dangerously close to not being able to access foreign capital sources to sell our bonds (borrow more money). If we don’t get this situation under control soon, we are going to blow up. If we can’t sell bonds, we can’t service our debt, and therefore we would be forced to default. It is closer to our reality than most think.
Apparently our government has told the IMF that we cannot help and that Europe must foot the bill for their own problems. We all need to watch vigilantly to make sure that behind the scenes, Congress does not vote to provide this funding. This would not be the first time that they have tried to sweep aid under the rug, hiding it from the public. These are precarious times. We cannot afford to be complacent,