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Governments bail each other out while millions are underwater and unemployed…

Greek Navy frigate HS Bouboulina F463

Let us be clear what is going on here: Washington is leaving you to fend for yourself, with a mortgage that is underwater, and bailing out Greece so it can continue buying weapons from American arms merchants:

From the New York Times, your tax dollars at work:

Just hours after leaders agreed to provide nearly $1 trillion as part of a huge rescue package, central banks began buying euro zone government bonds directly on Monday — an unprecedented move to inject cash into the financial system.

Officials were hoping the size of the rescue package — a total of $957 billion — would signal a “shock and awe” commitment to such troubled countries as Greece, Portugal and Spain, in the same vein as the $700 billion package the United States government provided to help its own ailing financial institutions in 2008.

In response, the euro has rallied against the dollar, markets surged and the risk premium on Greek and other government bonds plunged. But analysts pointed out that the package did little to reduce overall debt, and that the uncertainty that has plagued the markets could return if European nations did not take bold steps to reduce their borrowing.

“If the will for fiscal discipline in the E.U. is plainly evident, long-term confidence in the euro will be restored,” Michael Heise, chief economist of the German insurer Allianz, said in a note to investors.

After hours of meetings that lasted into early Monday morning, finance ministers from the European Union agreed on a deal that would provide $560 billion in new loans and $76 billion under an existing lending program to countries facing instability. Elena Salgado, the Spanish finance minister, who announced the deal, also said the International Monetary Fund was prepared to give up to $321 billion separately.

On top of the huge sum, the European Central Bank reversed its position of just a few days ago and began buying government and corporate debt. And the world’s leading central banks, including the Federal Reserve, announced a joint intervention to make more dollars available for interbank lending.

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