Greece is the Word, Part Three: Sacrificing the Dollar to Save the Euro or the Greek Revolution Will be Televised.

The most prominent speculation on the monetary front (if one listens to the talking heads) is whether or not the FED will institute a QE3 program once QE2 comes to a close at the end of June. A more pertinent speculation might be will Helicopter Ben and the boys at the FED still have jobs in the not too distant future. The Feds long standing policy of not revealing just exactly what they are doing in the cloistered halls of the Eccles building was brought to an end by a court ruling on FOIA requests seeking disclosure to find out just exactly who got that $700 Billion in TARP funding. There was little surprise and no small amount of anger when it was revealed that a large part of it went to US subsidiaries of European banks.

Having been exposed as taking better care of their European banking masters than the US citizens (which is their charge) one would think that the FED would take it as a lesson learned and refrain from the practice in the future. Apparently the arrogance of the elite knows no bounds however. It seems while they have been feeding the public and the politicians the lie that this latest round of money printing was needed to prop up the DJIA and “stimulate” economic growth here at home by providing cash to domestic banks to fund loans to business and individuals, the reality is that it has been nothing more than another rescue program for the European banks.

Since the inception of QE2 in November of last year the FED has printed in excess of $600 Billion in new magic money. If the reader will take the time to examine this chart it will tell you all you need to know.

The blue area represents the cash reserves of small domestic banks in billions of dollars. The grey area is the same for large domestic banks. The purple area is for foreign banks (those with US operations that can be used to transfer US dollars from here to their European operations.)

It doesn’t take a genius to see that since November the reserves of domestic banks have remained largely flat and that those of the European banks have gone vertical. And by how much? Oh just that $600 Billion or so that Bennie boy has printed.

So what’s going on here? Once again it doesn’t take a genius. On Wednesday the Greek parliament is scheduled to vote on the latest austerity package and the next round of bailout money for their bankrupt economy. (Read kicking the can down the road to default one more time.) Problem is some of the members of the ruling PASOK party are announcing they will be leaving the party in protest of the plan. If their numbers begin to grow passage of the proposal may become problematic. With the Parliament building surrounded by ever increasing crowds every day the psychology of fear and concerns for the personal security of the members would seem to be taking root. Small wonder then that there have been reports that the long abandoned escape tunnel under the Parliament building is being cleared out by foreign workers in case the situation tips over the edge.

Neither should we be surprised then that the ECB (European Central Bank) recently announced that it would be able to withstand a Greek default. Thanks Bennie, the US taxpayer and yet unborn generations just got to save the Banksters again!  Any wonder then why Obama meets at the White House with his Wall Street donors?

Got gibbets? Just how much longer the taxpayers are going to stand for this ongoing theft and fraud remains to be seen. Probably until it’s too late, if it isn’t already.