Bagus was recently asked by Ron Paul to assist his staff at a meeting of the House committee that Paul chairs. He reports on what two Fed staffers had to say about the Fed's actions and clearly explains exactly how the Fed is bailing out the Eurozone.
He also notes the many costs of such a policy. Like Mark Spitznagel, Bagus understands that, as with all creation of fiat money, the bailout facilitates a wealth transfer to those who receive the new money first at the expense of everyone else. He also cogently explains that, by helping the European Central Bank prop up banks who lend to the various European governments, it is supporting insolvent and irresponsible governments. As Bagus states,
The project of the euro leads to an ever-increasing rescue fund, and gradually toward a fiscal union and more centralization. A European financial government and the European super state, which would most likely abolish tax competition in Europe, are on the horizon. The highest cost of the Fed policy, therefore, may be liberty in Europe.