[Sixstrings]

Drudge has the headline "US TO BAILOUT EU" on the front page, linking to this article:

US Ready to Back Bigger EU Stability Fund: Official

The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday.

"There are a lot of people talking about that. I think the European Commission has talked about that," said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. "It is up to the Europeans. We will certainly support using the IMF in these circumstances."

"There are obviously some severe market problems," said the official, speaking on condition of anonymity. "In May, it was Greece. This is Ireland and Portugal. If there is contagion that's a huge problem for the global economy."

(snip)

The developments have echoes of the pressure applied by Washington on European capitals last May to create the near $1 trillion EFSF safety net that was last week used to rescue Ireland after its banking crisis spiraled out of control.

The IMF, whose biggest single shareholder is the United States, has committed 250 billion euros to the EFSF.

While reluctant to dictate to Europe how it should address the unfolding debt crisis, the U.S. government is growing concerned about the global fallout of Europe's predicament.
http://www.cnbc.com/id/40454469

But 25 minutes before this article was published, the US treasury denied it:

WASHINGTON (MarketWatch) -- The U.S. is not currently discussing a proposal that would have the International Monetary Fund provide more aid to Europe through an additional contribution to European Financial Stability Facility, a U.S. Treasury official said Wednesday. "An extra commitment is not something we are discussing right now," the official said. Equity markets moved higher Wednesday on reports that the U.S. was ready to support additional IMF funds for the EU stability fund. The IMF has already contributed 250 billion euros to the EU fund.
http://www.marketwatch.com/story/us-treasury-no-talks-now-on-bigger-eu-fund-2010-12-01

From Zerohedge:

Bad News For Euro Rescue: US Is NOT Discussing Larger IMF Contributions To European Rescue Funds
According to the WSJ the US is not discussing a larger IMF contribution to the European Rescue Fund. EURUSD plunging now. The theater continues.
http://www.zerohedge.com/article/bad-news-euro-rescue-us-not-discussing-larger-imf-contributions-european-rescue-funds

So which is it? Are we Americans rushing in on a white horse to save Europe or not?

[aldente]

Fact is that Europe with main culprit agressor Germany still is a former War Zone. So whatever a Euro 'peace' currency zone, be it politically based (outch) or (here comes the x-factor) based building of the future "wanna be"- it is an enigma after all with not much of a lively future.

[Daniel_Plainview]

So which is it? Are we Americans rushing in on a white horse to save Europe or not?

Unfortunately, the US will be forced to bailout Europe if that's what it takes to keep the plates in the air and to prevent a collapse of the house of cards. If a systemically important country (Spain, e.g.) were allowed to fail/default, then the resulting contagion and derivatives bombshell would imperil the status quo and wreak havoc upon the banks ... something Bernanke & Co. could not allow.

The US might say that it will not DIRECTLY bailout Europe, but the US will find a way to INDIRECTLY bailout Europe by printing more dollars. This bailout game will continue up until the point of the US's hyperinflationary collapse.



The question is how long can the plates be kept in the air?

[aldente]

Correct, and as long as the lights are staying on here in Europe no one has a problem with your statement.
What if Duncans statements or after all other Peaksters predictions come true and our civilicational livetime might have to deal with a "sudden" X-factor?

[vtsnowedin]

I'm feeling a bit dense today. (Yes Sid Yama I know you think I always am).
On the rumor that the USA ,which is on the way to insolvency in it's own right, would step in to "Bail out" Europe the stock market jumps some 250 points? How does the US taking on more debt make any American corporation worth more per share? Considering the future taxes that will have to be imposed to pay for this fiasco including the interest as we have to borrow the money seeing as how we are in deficit already I would think this would have started a major sell off. I'm going to go back to my Bird and Fortune tapes and see if they can explain it to me.
http://www.youtube.com/watch?v=UC31Oudc ... re=related

[Sixstrings]

How does the US taking on more debt make any American corporation worth more per share?

Well.. most "American" corps are more global than American. Not that the stock market is rational anyway.. any news of money printing sends it up. If nothing else, that could just be pricing in future inflation -- don't forget that in an inflationary environment the stock market goes up along with everything else.

By the way, I see Drudge has this headline now:

BOMBSHELL: European banks took big slice of Fed aid...
http://www.ft.com/cms/s/0/4dd95e42-fd6d-11df-a049-00144feab49a.html

I think everyone here at po.com already knew that but anyhow it's official -- we ALREADY bailed Europe out.

[Keith_McClary]

By the way, I see Drudge has this headline now:

BOMBSHELL: European banks took big slice of Fed aid...
http://www.ft.com/cms/s/0/4dd95e42-fd6d-11df-a049-00144feab49a.html

FT paywall

I think everyone here at po.com already knew that but anyhow it's official -- we ALREADY bailed Europe out.

They should return the favour, print some Euros and bail you out.

[Plantagenet]

Is the US going to borrow more money from China to bail Europe out, or is the US just going to print more dollars and give them Europe?

[Sixstrings]

Is the US going to borrow more money from China to bail Europe out, or is the US just going to print more dollars and give them Europe?

I think the plan is for everyone to print a bunch of money and keep bailing each other out. What could go wrong with that?

[Denny]

It is really quite funny.

Its like Popeye hitting on Wimpey for a loan. (I guess, except, in this case, Wimpey has a currency printing press in his basement.)

[jbrovont]

That's a good question. It could be a mixture of factors - a plan "B" being set up to provide protection against further economic trouble may be getting priced in creating upward pressure on the market. A predicted fall in the exchange rate for the dollar (more debt = more money printing) could also result in inflation getting priced into the market. It's hard to say; the disconnect between market pricing and traditional causes and effects we're used to seems to be growing daily.

On the rumor that the USA ,which is on the way to insolvency in it's own right, would step in to "Bail out" Europe the stock market jumps some 250 points? How does the US taking on more debt make any American corporation worth more per share?