This is the latest news. Nothing is really a surprise anymore. The report says that the U.S. would be ready to commit extra money to the International Monetary Fund (IMF) which ultimately would be seemingly used to bail out failing European governments and banks.
How significant is this development? By itself, it is not that significant. But it is just another sign that the governments of this world are out of control and the U.S. is in as much trouble as any other government. The U.S. government has been able to prolong its out of control spending and debt because the U.S. dollar is the reserve currency of the world. But this too will come to an end eventually.
Greece, and now Portugal and Ireland among others, have felt the pinch because they are more like state governments in the U.S. For example, Greece is more like California than the U.S. government. Why? The reason is because Greece does not have direct control over the euro, which is the currency that is used in the country. California also does not control the U.S. dollar. That is up to the Fed. In Greece's case, it is the European Central Bank and the other governments of Europe that can bail out Greece. Greece cannot simply print money to buy its own bonds the way that the Fed does.
But every game like this must come to an end. The game of the U.S. government and the Federal Reserve will come to an end eventually. We can know this by studying Austrian free market economics. The Fed will eventually have to make a choice. It will face hyperinflation and it will have to choose. It can either completely destroy the dollar or it can save it. I think the Fed will try to save it, but hopefully before it is not too late. To save the dollar, the Fed will have to refuse to buy more government bonds. This will drive rates sky high. The congress and president will then have to choose. They will have to cut back severely (including Medicare, Social Security, and the empire overseas) or it will have to default on its debt. It may have to do some combination of both.
Either way, the day of reckoning is coming. Be prepared with your family and your investments. Try to educate others on why this is happening. Try to educate others that liberty is the answer to our problems and not more government. Then when the dollar and DC come crashing down, we will be there to pick up the pieces and instead of continuing with more big government, we can move forward with peace and freedom.