Thursday, June 04, 2009
$100 Billion Bailout For IMF Tagged On To War Funding Bill
Wednesday, June 3, 2009
Democrats in Congress have agreed to provide a $100 billion credit line to the International Monetary Fund, tagging it onto the war supplemental intended for operations in Afghanistan, Pakistan, and Iraq.
The measure would also increase the U.S. member contribution to the IMF by $8 billion and authorize the United States to back the IMF’s plan to sell 400 tons (12.97 million ounces) of gold, according to lawmakers’ aides quoted in a Reuters report.
This would fulfil Obama’s pledge to the G20 in April, to contribute toward a $500 billion boost for the IMF, which it says will go toward “helping poorer nations” during the economic downturn.
However, what the The Treasury Department is really proposing is an international version of the Wall Street bailout; a $100 billion bailout for the IMF, which amounts to a bailout for European banks facing big losses in Central and Eastern Europe.
If the bill pasess, we will see $100 billion in U.S. tax dollars simply handed over to foreign banks with no oversight.
House Republicans, including Minority Leader John Boehner, have threatened to vote no on the war funding if the IMF money is attached.
“Let’s be clear: a troop-funding bill should fund our troops, period,” said Boehner.
“Weighing down this critical legislation with nondefense spending will only drag this process out further and cost it essential Republican support needed for passage.”
“We should not be having this discussion. IMF funding has no business being included in the war supplemental” bill, said Representative Eric Cantor, a member of the Republican leadership.
The passage of the bill will be an extrememly close run contest, given that GOP votes are needed to make up for 51 anti-war Democrats who opposed it last month.
If all Republicans vote no, then the House leadership will need 18 of the Democrats to reverse their defection and vote yes.
Of course, because the IMF money is tagged onto a bill to fund U.S. troops in the field, there is increased pressure on those considering voting down the measure.
We have previously highlighted the ongoing agenda to vastly empower the IMF and transform the institution into a “bank of the world” with the power to print its own currency.
This is not a “conspiracy theory”.
As the Washington Post highlighted two months ago, the agenda is laid out in publicly available internal IMF documents, interviews and think-tank reports.
It is part of an open move to empower a group of unelected central bankers with the authority to usurp state sovereignty by overseeing benchmarks for national economic governance and setting regulations for financial institutions all over the globe.
As we have also previously highlighted, both the IMF and the United Nations have thrown their weight behind proposals to implement a de-facto global financial dictatorship.
Both bodies have expressed support for new world reserve currency system to replace the dollar as part of the acceleration towards a new economic world order.