Will Americans Pay to Bailout Yet Another Foreign Bank ... in Afghanistan?

George Washington's picture

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Dr. Sandi's picture

There's a strange symmetry at work here.

Undoubtedly, the original money the Kabul banks were loaning out 10 to 30 times was those wooden pallets of FRNs that 'nobody' can trace.

Now that they've been properly stolen, leveraged and restolen, the Fed is going to print up replacements. Probably shipping them over on more wooden pallets.

Maybe, if we're lucky, somebody will round up all the pallets and ship them back here for us senile citizens to play with. And that's probably about the best return we can hope for on our investment.

whatsinaname's picture

anything wrong with buying some prime property in Palmyrah (Dubai) ?

nah..BB will cover the costs.

Segestan's picture

Oh.. but I heard Americans only abuse Illegal Immigrants. How can American's now be told, without asking,  they are helping a foreign bank?  No way!!!

tom a taxpayer's picture

Next the U.S. and Afgan govts will issue joint communique saying that the Kabul bank run crisis is "contained".

knightmare's picture

At the bank’s main branch, an environmental engineer named Hamid disagreed. He had waited more than five hours to fill his straw vegetable sack with his entire savings: $100,000.

“I don’t trust my government,” he said, gripping the sack tightly. “They lie. I’m an old man, and I have enough experience in my life to know how this government is."

 

He understands Austrian Economics. Run on the Bank!!

SoCalBusted's picture

I can't quite tell, is Hamid located in the US?

johnnynaps's picture

New age economics:

1. Pay taxes when you are young enough to establish a base with social security.

2. As you age, learn the blackmarket.

3. Make as much as you can in the blackmarket in the last 10 years before retirement.

4. Don't trust anyone.

5. Invest 10% of your income in physical gold.

6. Forget that $60k sports car, a $10k crotch-rocket goes even faster.

7. Materialism just leaves you susceptible to being "let down", for everything breaks quickly these days and costs money to replace.

8. Exercise, eat healthy and cut your hair like a state trooper to avoid unneccessary tickets and prolong the quality of your life.

9. Your home is not an ATM.

10.Travel, Drink, Bone and have fun.......then look back and say "at least I accomplished something"!

Dr. Sandi's picture

Wise words, napster!

Two comments though. Number 6. Bikes scare the crap out of me, so I'm sticking with the 8 year old Odyssey.

And the second part of number 8:

8. Exercise, eat healthy and cut your hair like a state trooper to avoid unneccessary tickets and prolong the quality of your life.

After cutting my hair like a state trooper, intriguing bull dykes keep pestering me, which makes my regular mates nervous.

digalert's picture

"No American taxpayer funds will support Kabul Bank"

                   Now listen to me,

US taxpayer funds will be used to BAIL out Kabul Bank.

whether you like it or not.

Treeplanter's picture

True.  They will deny it.  Time will pass.  They will do it.

knukles's picture

"No American taxpayer funds will be used to support Kabul Bank,"

But, technically, that is absolutely, positively, without question, undeniably True.

The spokes person was from treasury, which is the repository for all governmental receipts and disbursements.  That, is undeniably Taxpayer Money.

Swap lines from of the Federal Reserve and attendant collateral are respectively liabilities and assets of and on the balance sheet of the Federal Reserve and thus, do not constitute Taxpayer Monies.  The Fed is owned by member (private) banks, not the Federal (Taxpayer) Government.

The statement is correct. 

However, the expansion of the US dollar denominated money supply (liability side of the Fed's balance sheet) has a material effect upon the economic well being of every single American as does the quality of the collateral held against the swaps (asset side of the Fed's balance sheet) and when those get to big and or the quality thereof deterioratestoo far (read Zimbabweization) the the American taxpayer is negatively impacted.

This is exactly why Ron Paul and others of the same ilk (author included) keep worrying and warning of.  The Fed is not audited, reports loosely to Congress and pretty much does as it damned well sees fit.

To wit.....  Bernankethe other day said that the Fed had no power to save Lehman.  Let's, for the sake of argument, accept that as is, complete, correct, honest and indisputable.  Then, where the fuck did they get the power to bail out AIG? 

Why do most in DC not take Ron Paul's efforts seriously?  Not wanting to kill it's own Candy Land Machine?

DavidC's picture

Hmmm, always thought how well dressed the Karsais are.

DavidC

Popo's picture

No, that money comes from being on the board of Chevron. (you know, the company that miraculously got the Afghan gas rights).

Condy Rice is also on the board. She championed Karzai's appointment.

Any questions?

max2205's picture

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