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I'm not sure that a loan to Ireland would constitute an addition to the USA's total debt (and debt ceiling).  It would be a credit on the books of the Fed and a provision of liquidity rather an asset transfer?

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun May 8th, 2011 at 10:08:54 AM EST
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If it does not require selling more Treasury Bonds it is much more likely. I don't know. The Fed's Maiden Lane facilities are assets also....

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun May 8th, 2011 at 10:34:32 AM EST
[ Parent ]
Then they'd have to lean on the Fed. But yes, it's easier to hide things like that on the books of your central bank than on the Treasury's books.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun May 8th, 2011 at 03:26:48 PM EST
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Just use a FOREX swap with a slightly skewed present value to hide the loan. Then when the swap blows up you can still fleece Ireland...

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Mon May 9th, 2011 at 02:10:47 AM EST
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