The United States Federal Reserve, along with five other world bank leaders, had lent money to the European Union as its assets have begun to liquefy. There are two factors in this issues ~ the United States’ granting of money in the face of its depression, and the economic issues involving European countries and diplomatically-entangled nations.
1. The US is in a $15 TRILLION dollar deficit – and this is the amount revealed to the public… We are not in a position to be giving away non-existent money. Our nation has already granted money to the European nations in deficit, and it is detrimental to our domestic economy and our nation to continue bailing them out.
~ In the long term:
We will be unable to gain our return payments from a continued unstable European Union. The printing of more money, and the waste of money from our own government spending, will lead to a dramatic increase of inflation.
2. Germany has one of the (if not THE) strongest economies in the European Union. Germany, if asked to also bail out its neighbors, its own economy will falter if it complies. If Europe has to come to this final outcome, then Germany may not comply and allow the European Union to fall instead of bowing to their level of bankruptcy.
~ In the long term:
China is most definitely looking to aid Europe, as Europe is a major importer of their goods. Military spending of the Chinese, as well as their domestic economy, is dependent upon the flow of money form their foreign consumers. The Chinese may look to the United States (crazy, but possible) to fix this mess, but it will not lower any US expectations to do so.
Overall, this trans-location of money from all about the globe will simply fill a black hole, to pull the countries granting the money towards further deficit of their own. The increased globalization of the world has led to this, in which every nation’s economy is influenced by everyone else. The results of this funneling of international funds will lead to the next global socio-economic demographic transition – and on the largest scale in history.