Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
"Whether the ECB would have agreed to that under any circumstances became moot once Geithner vetoed the IMF proposal."

But we only have one unsubstantiated and denied allegation that Geithner vetoed anything. And that allegation is surrounded by checkable inaccuracies.

Whether Kelly is telling the truth, making it up, or carrying someone else's excuse is impossible to tell. What's easy to tell is who benefits: the Germans, the UK and the Irish government all of whom have a convenient scapegoat.

Obama blocked IMF deal to haircut Irish debt. Boycott Obama's speech in O'Connell St - pass the word around


And this at a time when the US and Germany are actually in a known dispute

On a more fundamental level, however, Washington is concerned that, should Europe overreach in its rush to cut government spending, it could endanger the fragile economic recovery that has taken hold on the Continent and around the globe. In particular, the US would like to see countries like Germany and France continue efforts to stimulate their economies.


And the US policy has been, for a while to oppose Euro austerity

"In a letter to G20 leaders last week, US President Barack Obama warned against cutting national debts too quickly, arguing it would put economic recovery at risk"

So the claim is that in contrast to clear US policy, the US treasury department is forcing massive austerity on Ireland and backing up the bond hawks. I guess it is possible, but to me it seems more likely to be disinformation designed to focus popular discontent on an easy target.

by rootless2 on Tue May 10th, 2011 at 12:59:06 PM EST
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