EU’s Bailout Structure, Behind The Scene Role of the US

Speaking of the policy of bailouts (possibly financed by inflationism), here is nice graphic from the Economist.

The Economist writes,

PORTUGAL’S bail-out means another stage in Europe’s debt crisis and another call on non-European coffers. The total €865 billion ($1.2 trillion) pot available for euro-area rescues looks enormous, more than enough to cope with Greece, Ireland and Portugal’s anticipated needs besides. Almost half of that comes from the European Financial Stability Facility, a €440 billion euro-zone fund whose major contributors are Germany, France and Italy. But the EFSF’s effective lending capacity is only €250 billion, because only six of its 17 members have a AAA credit rating. European leaders have pledged to bring the fund’s actual firepower up to €440 billion by the summer but in the meantime the IMF has more cash on hand, at €280 billion. If all that money were used (a very big if), America would end up lending indebted euro-zone nations €50 billion.

Oops, the last statement shows why the US dollar will likely keep falling…the US appears to be bailing out the rest of the world! (this included Libya’s Gaddafi in 2009)