Glenn Beck baselessly claimed that the Federal Reserve would send “almost another trillion dollars, your tax dollars, over to Europe.” In fact, U.S. officials have said that there are no plans under discussion to send additional money to Europe.
Beck Claims The Fed Will Spend “Another Almost $1 Trillion” To Bail Out Europe
Beck: “Now We Find Out Through The Fed That We Are Going To Do Almost Another Trillion Dollars, Your Tax Dollars, Over To Europe.” On his Fox News show, Beck said:
BECK: We also told you that the IMF would bail out Europe. Here we were on this program, oh, I don't know how many months ago. Watch.
BECK [video clip]: We're not only bailing ourselves out, Fannie and Freddie, but now we're trying to bail out Europe as well. The European Union, along with the IMF, is giving $1 trillion to Greece -- $1 trillion. The U.S. contributes 17 percent of the IMF funds.
BECK: OK. So, we told you that, and nobody really paid attention. Now we find out, through the Fed, that we are going to do almost another trillion dollars, your tax dollars, over to Europe.
We also found out that we have sent $3.3 trillion in our bailout, a lot of it went over to Europe, went over to France, went to Germany, Spain, et cetera, et cetera. And we're sending more. [Glenn Beck, 12/2/10]
FACT: U.S. Reportedly Not Considering Sending “Your Tax Dollars Over To Europe”
WSJ: “The U.S. Isn't Discussing A Larger International Monetary Fund Contribution To The European Rescue Package.” The Wall Street Journal reported:
The U.S. isn't discussing a larger International Monetary Fund contribution to the European rescue package, a U.S. official said Wednesday.
European Commission officials have been discussing whether to increase the EUR750 billion rescue package as a way to handle possible sovereign debt problems in Spain and other countries. A bigger fund would likely include a larger financial contribution from the IMF, which now is committed to spending as much as EUR250 billion on euro-zone rescue loans.
(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)
U.S. Undersecretary of Treasury Lael Brainard is now in Germany discussing the Europe's plans to contain the euro zone's sovereign debt woes. A U.S. official said those talks don't now include a larger IMF contribution.[Wall Street Journal, 12/1/10]
AP: U.S. Official “Said That An Addition To The IMF Support Package Was Not Something That Was Being Discussed Currently.” The Associated Press reported:
A U.S. official, who would speak only on condition of anonymity because discussions were still ongoing, said that an addition to the IMF support package was not something that was being discussed currently.
Treasury Secretary Timothy Geithner did dispatch Treasury Undersecretary Lael Brainard, Treasury's top official on international matters, for talks with European officials. Brainard had meetings in Madrid with economic officials on Wednesday and was scheduled to be in Berlin on Thursday and Paris on Friday.
The U.S. “can't afford to let Europe implode,” said David Gilmore of Foreign Exchange Analytics. But the reported statement by the U.S. official does not necessarily mean that the U.S. has already agreed to a deal allowing the IMF to contribute more money or that it will pony up more money for Europe itself.
Investors were relieved by the implication that the EU and the IMF might be assembling a larger bailout fund, Gilmore said, because of the threat of there not being enough funds for Spain, should it need a rescue.
A spokesman for the EU's monetary affairs chief Olli Rehn said he had not heard of talks about extending the EFSF fund.[Associated Press, 12/1/10]
Beck Previously Suggested That He Could Not “Just Make Things Up And Remain On The Air”
Beck: "[D]o You Really Believe That I Could ... Just Make Things Up And Remain On The Air?" On his Fox News show, Beck said:
What is it that we make up? I would ask you to just take a moment here -- do you really believe that I could -- or anybody here at Fox News could -- just make things up and remain on the air? No. [Glenn Beck, 11/29/10]