The Libertarian Patriot
That's right, as part of the bailout of Greece, the IMF will borrow $780M from the Fed at the bargain basement price of 0.25% and which is probably considerably less than what we are paying China to buy Treasuries.
So while Leviathan quibbles over the debt ceiling, unemployment rises and more and more Americans are relying on government handouts, those of us who are still contributing to the system are being asked to give our hard earned money to a country that couldn't manage it's own affair and is on the verge of collapse.
Once again, the real winners of this are the hedge funds that have been buying Greek debt at 40 cents on the dollar and will be paid the interest on their notes from the bailout. Yes these are the same hedge funds that made out big when Lehman collapsed and Wall Street got bailed out.
So for those of you keeping score at home, we are borrowing money from China to lone to the IMF (at a loss) to bailout Greece so that they can pay the hedge funds that own their debt, on the backs of the US taxpayer.
What a great country we are.
The IMF is delighted to announce that it just approved a €3.2 billion disbursement of cash for Greece, its fifth, as part of the €12 billion in money that Greece needs in order to continue operating in the months f July and August. And just for what purpose will this money be used, one may ask? Well, as explained a few weeks ago, in Greek Math: €12 Billion In, €18.2 Billion Out the entire amount will be promptly recycled by global financial institutions in the form of debt maturities and interest payments, which amount to €18.2 billion in the months of July and August. Simply said ECB, EU and IMF money in, money owed to bankers out. The kicker: 17.09% of the money coming from the IMF, comes from, that's right dear US taxpayer, you (and since 21% of the quota contributions allocated to the IMF are deemed "non-usable", the actual number funded by the US is likely much higher). But this plot has a bonus kicker: as we reported on Wednesday, the actual Greek debt is no longer owed by European banks to the extent it had been previously expected: a development that threatens to scuttle the entire second Greek bailout plan as currently proposed. So as the banks have been selling Greek debt, who has been buying? Mostly hedge funds, such as everyone's favorite John Paulson. So to recap: US taxpayers have just paid out about $780 million of the $4.6 billion in order to fund interest owed to... hedge funds.