As if money were no object, the US has joined European nations to help salvage what’s left of a currency union that’s hit the skids.
The US is helping to finance the EU bailout in two ways. First, in the form of a massive currency swap line it’s extending to EU countries to support increased dollar demand. Second, in cash the US has paid for its roughly 17 percent membership stake in the IMF… funds which are at least partly being loaned out now to support Europe. Yet, financially speaking, the US is in a fairly poor position to be helping out other nations.[Read more...]