USA Flat Broke; But Obama Will Bail Out Greece Again

President Obama and Chancellor Merkel

Washington DC, Jun 8, 2011. American President Barack Hussein Obama, D-Kenya, has urged Europe to prevent a default by Greece, and pledged U.S. support to solve Greece's debt crisis.

Obama, who met with visiting German Chancellor Angela Merkel, stressed the importance of German leadership on the issue, which means he wants Germany to help out too.

The President sees Greek debt aid as vital to to the recovery of the US economy.

Obama's poll numbers at home have suffered from persistently high unemployment, growing inflation, extremely high gas prices, staggering U.S. debt, and the continued devaluation of the dollar, but he has now blames the euro zone crisis as one foreign "headwind" hitting the U.S. economy.

"I'm confident that Germany's leadership, along with other key actors in Europe, will help us arrive at a path for Greece to return to growth, for this debt to become more manageable," Obama said.

As the  largest contributor to the IMF the United States taxpayer is on the hook for the second Greek bailout. Of course, the most deplorable part of this whole plan isn't just the fact that the U.S. is helping to bail out Greece... but that this bailout is really just one more bank bailout!

Americans are getting tired of bank bailouts

This proposal for a second Greek bailout package worth an additionl $160 billion is taking shape. Naturally, this will be funded by American taxpayers.

And the prime beneficiary will be the national banks of Germany and France who hold most of the Greek bonds that are at risk.

Merkel, under political pressure at home to avoid being the financial savior for other struggling European countries, said Germany understood its role.

"We've seen that the stability of the euro as a whole will also be influenced if one country is in trouble," she said.

This isn’t about the people of Greece.  They are going to be forced into years of austerity and painful economic times regardless of the situtation.  What this is really about is the $189 billion in Greek debt that the European banks have on their books.

President Obama wants to take this risk off the backs of the European banks and place it squarely on the shoulders of American taxpayers. He will either print more dollars or borrow more money from China to fund this European bank bail out.

We all know how well the last bank bailout worked for all of us.  With the banks reaping record profits and doling out record bonuses U.S. unemployment remains near its 25 year highs.   The only true recovery in this “recovery” has been the one in bank profits.

The bailouts sure worked great for Wall Street, but didn’t work that well for Main Street.

And make no mistake here – the people of Greece will be forced into years of painful austerity measures regardless of the outcome here.  The real winner here will not be the Greek people, it will be the huge national banks in Germany and France.

With U.S. unemployment at 9.1 percent, Obama has blamed outside forces for impeding the economy, including high fuel prices, the earthquake in Japan and the euro zone crisis.

"America's economic growth depends on a sensible resolution of this issue," he said.

"It would be disastrous for us to see an uncontrolled spiral and default in Europe because that could trigger a whole range of other events."

Obama welcomed Merkel at a formal ceremony on the White House lawn with firing cannons and military musicians adding to the pomp of an official visit.

Later in the evening Obama and his wife Michelle hosted Merkel and her husband, Joachim Sauer, for a state dinner, where the president awarded her the "Medal of Freedom" - the highest U.S. civilian honor.

"Tonight we honor Angela Merkel, not for being denied her freedom, or even for obtaining her freedom, but for what she achieved when she gained her freedom," Obama said.

What President Obama neglected to say was that Merkle only got her freedom because of the policies of President Ronald Reagan, which directly led to the collapse of the Soviet Union and the reunification of Germany. And these were policies that his party vigorously opposed.