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European debt is in EUROS.

How does printing USD helps?

 

Lowering interest rate helps debtors. How does it help solvency?

 

Will today's arrangement or deal help Italy borrow at lower rate?

 

What am I missing?

 

Debt can only be repaid with interest or someone (debtor or creditor) has to take pain. No?

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European debt is in EUROS.

How does printing USD helps?

 

Lowering interest rate helps debtors. How does it help solvency?

 

Will today's arrangement or deal help Italy borrow at lower rate?

 

What am I missing?

 

Debt can only be repaid with interest or someone (debtor or creditor) has to take pain. No?

 

 

 

The fine print reads:

 

The six central banks also agreed to create temporary bilateral swap programs so funding can be provided in any of the currencies “should market conditions so warrant.” Those swap lines were also authorized through Feb. 1, 2013.

http://www.bloomberg.com/news/2011-11-30/fed-five-central-banks-lower-interest-rate-on-dollar-swaps.html

Translation: we will give you freshly printed dollars or euros via the IMF/ECB pipeline in exchange for your Greek bond.

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Good luck to all. You will need it as the Dollar will now be printed to shore up European debt because the Germans refuse to print. We now have intercontinental moral hazard where the debts of the European welfare state and huge demographic bubble will be monetized by Americans.

That won't happen. Can't.

There is no effing way that the U.S. is going to shoulder Italy et al. on its balance sheet before Germany. Never. Perhaps in unison. Perhaps. But still, likely not.

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The fine print reads:

 

http://www.bloomberg.com/news/2011-11-30/fed-five-central-banks-lower-interest-rate-on-dollar-swaps.html

Translation: we will give you freshly printed dollars or euros via the IMF/ECB pipeline in exchange for your Greek bond.

 

I'm NOT capable of understaning technicals or fundamentals portrayed in the link but does it mean Fed can print Euros to ease European debt?

 

All I know is at end of the day/month/year/decade is if a debtor can't pay the debt then he/she/it or the creditor or both have to suffer losses.

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That won't happen. Can't.

There is no effing way that the U.S. is going to shoulder Italy et al. on its balance sheet before Germany. Never. Perhaps in unison. Perhaps. But still, likely not.

 

...is there an effing way that the U.S. is going to shoulder Calf, Illinois et al. on its balance sheet? We still have States with world class GDP's that are in deep shit. funny how the news noise moves around from story to story.. and funny mentals get lost to the sheep. I wonder If I will live long enough to see how this ends.

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That won't happen. Can't.

There is no effing way that the U.S. is going to shoulder Italy et al. on its balance sheet before Germany. Never. Perhaps in unison. Perhaps. But still, likely not.

 

Wouldn't count on that. After all that has happened since 2008, I wouldn't think that a bipartisan sponsored bill calling for the FDIC to provide full backing of basically ANYTHING (including derivatives) would have a chance of passing either...but here we are.

 

United States Covered Bond Act

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