This joke has it right.

Question: A Greek, an Italian and a Spaniard walk into a bar. Who picks up the tab?
Answer: The Americans.

The author understands how the financial markets work. The Europeans will pay for their bankers’ stupidity. So will we. MF Global was just the beginning.

And then there is the decision by the Federal Reserve to ride to the rescue of European banks with more liquidity by cutting rates on dollar swaps. That follows hard on the heels of the news of $7.7 trillion in secret Fed bank bailouts during the mortgage meltdown. The chief beneficiaries of that Fed largesse – JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley – have predictably been identified as those U.S. banks with the most exposure now to the European crisis, amounting to hundreds of billions of dollars. They, too, must have grown accustomed to the bailouts.

Must the rest of us be victimized by the collapse of European debt and its contagion? Is there anything for us to gain from it? The answer to both questions is yes.

You have figured this out. Most Americans have not.

Americans will be collectively victimized by the monetary authority, the Federal Reserve. The Fed will print as much money as necessary to protect the banking cartel which it serves. It has ever been so. And Americans will be victimized by the resulting destruction of the dollar and the further crippling of the economy.

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