There’s a rather simple solution to Europe’s fiscal crisis, but politicians will never do the right thing unless every other option is exhausted.
That’s why American taxpayers should not be involved in any sort of European bailout, either directly or indirectly.
This cartoon captures my sentiment.
At the risk of being picky, however, I would replace “Fed” with “USA/IMF” or something like that.
As I explained a few days ago, the Federal Reserve’s recent announcement that it will provide dollar liquidity to Europe is not necessarily objectionable. After all, the Europeans have to pay us back if they borrow dollars, with interest, at current exchange rates.
Yes, I worry European politicians may interpret the Fed’s actions as a signal that they can defer long-overdue reforms, and I also worry that it might be a precursor for easy-money policies in the future.
But the real threat to American taxpayers is that the International Monetary Fund may provide more bailouts to Europe.
I keep explaining that the only solution is for Europe’s welfare states to copy the Baltic nations and actually cut spending, but that will never happen if European politicians think that they can get an IMF handout (and thus shift some of their bad fiscal policy onto the backs of American taxpayers).
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[…] Amusing Cartoon Asks Whether American Taxpayers Should Bail Out Europe’s Welfare States […]
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[…] Amusing Cartoon Asks Whether American Taxpayers Should Bail Out Europe’s Welfare States […]
[…] about Obama’s class-warfare agenda that can be seen here and here. I’m also partial to his cartoon about the Fed helping to bail out the euro. But the one that makes me laugh the hardest is his cartoon about the “war against […]
[…] the only bailout humor I found in my archives are this funny cartoon about the Federal Reserve helping to bail out Europe and this very good cartoon about Greece deciding to take more handouts from the rest of […]
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[…] you want other Chip Bok cartoons, click here, here, here, here, here, here (my favorite), here and […]
[…] you want other Chip Bok cartoons, click here, here, here, here, here, here (my favorite), here and […]
[…] Obama’s class-warfare agenda that can be seen here and here. I’m also partial to his cartoon about the Fed helping to bail out the euro. But the one that makes me laugh the hardest is his cartoon about the “war against […]
[…] may as well enjoy some humor before the world falls apart, including this cartoon about bailouts to Europe from America, the parody video about Germany and downgrades, this cartoon about Greece […]
[…] may as well enjoy some humor before the world falls apart, including this cartoon about bailouts to Europe from America, the parody video about Germany and downgrades, this cartoon about Greece […]
[…] you like this Bok cartoon, some of my other favorites can be seen here, here, here, here, here, here, […]
[…] you like this Bok cartoon, some of my other favorites can be seen here, here, here, here, here, here, […]
[…] the only bailout humor I found in my archives are this funny cartoon about the Federal Reserve helping to bail out Europe and this very good cartoon about Greece deciding to take more handouts from the rest of […]
[…] can see more good Bok cartoons here, here, here, here, here, and […]
[…] may as well enjoy some humor before the world falls apart, including this cartoon about bailouts to Europe from America, the parody video about Germany and downgrades, this cartoon about Greece […]
[…] may as well enjoy some humor before the world falls apart, including this cartoon about bailouts to Europe from America, the parody video about Germany and downgrades, this cartoon about Greece […]
[…] may as well enjoy some humor before the world falls apart, including this cartoon about bailouts to Europe from America, the parody video about Germany and downgrades, this cartoon about Greece […]
Why on earth would Europe be expected to give up the insane spending when they see us not capable of doing it, and when the get the moeny with no strings?
“the only solution is for Europe’s welfare states to copy the Baltic nations and actually cut spending, but that will never happen if European politicians think that they can get an IMF handout”
Maybe I am too pessimistic, but I’m afraid that it will never happen until European welfare states actually default … and that it’s a matter of when, not if: the IMF can only prolong the agony.
they don’t “have” to do anything … lending money to someone who has no means of paying is not lending … it’s giving
What’s likely to happen is the same a what happened with the crap investments in the US. The FED/IMF/whatever will keep the market up by buying all the crap private investors are selling.
It’s not so much a gift to the European countries as it is a gift to people (including US banks) who would otherwise be holding sovereign bonds that weren’t worth much.
More bailouts for investors really … at the expense of anyone who has dollars in the bank, or who get paid in dollars.