Insanity: US Ready to Back EU Bailout

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.

I have an anticipated a lot of moves by the U.S. government. Given the government has debt problems at the federal, state and local levels. That President Obama may hold off his Hawaii vacation for budget and tax talks, the last thing I expected is for the government to jump in to the PIIG pen.

I don't know who this official is, but he sure sounds high level, and Reuters is unlikely to run with a story like this unless it is from a clear in the know source. Here's more from Reuters :

"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."

Knowing this. This is really scary:

The remarks foreshadow a visit to Europe this week by a U.S. Treasury envoy who is expected to visit Berlin, Madrid and Paris to hold talks on the ramifications of the debt crisis.

Well, it was fun to watch the clips of the Greeks and Irish getting squeezed by the banksters. Now, the bastard bankers are coming after us.

UPDATE: Contradicting the Reuters report, according to WSJ, the US is not discussing a larger IMF contribution to the European Rescue Fund.

Still we have a Treasury envoy headed over next week, which is not a good sign.