Source of the Money?





Saw this funny video on YouTube about the ongoing bailouts in Europe in the form of a quiz. Questions included naming the countries being bailed out. The amounts involved. The countries doing the bailing out.

The best question went something like this: Where were countries like Germany going to get the money to do a bailout if they were in not that a great shape themselves?

Nobody seems to have an answer to that one. The other "bailers" like the US and Britain can print dollars and pounds. Germany, on the other hand, can not print its currency because the Euro can not be printed unilaterally by any member nation. So where exactly will Germany get the money from?

Two options I can think of: the first is that the EU agrees to print more Euros. Seems unlikely given that it would drive inflation up all over the Euro zone. The second option is for Germany's debtors (like Greece) to eventually start paying them back. I wouldn't hold my breath on that happening.

The video didn't provide an answer either.

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