03.15.2012 0

IMF approves another $36.7 billion to prop up Greece

European BailoutBy Bill Wilson — To date, the IMF has given Greece and European banks $26.8 billion in kick-the-can refinance loans. Now the IMF, which the U.S. funds, is bailing out the banks that bet poorly on her debt with another $36.7 billion. Our stake was already $13.5 billion of American taxpayer money being used propping up Greece, Portugal, and Ireland.

With this latest loan, the U.S. stake will rise to more than $20 billion spent on bailing out Europe. That does not count additional lending that is taking place by the Federal Reserve to prop up the European financial system. To put the $20 billion spent on Europe into perspective, in the 2010 all 50 states got a bailout from the Pelosi-Reid Congress of $26.1 billion. We’ve sunk 12.7 times more into Greece, Portugal, and Ireland per capita than individual states received on average in their last bailout. This is positively outrageous.

Making matters worse, the U.S. has a prominent seat at the IMF, which could have been used to prevent this bailout. There has been no word on how the U.S. representative voted yet.

Either, we voted yes, putting the lie to Treasury Secretary Timothy Geithner who just in February said ‘it’s unlikely you’re going to see the major shareholders of the IMF be prepared to have the IMF play a larger response’ in Greece. Or, perhaps we voted no, in which case it proves the U.S. has surrendered fiscal sovereignty to the international central bank cartel.

Now is the time to pass legislation proposed by Rep. Cathy McMorris Rodgers and Sen. Jim DeMint that would rescind $108 billion additional funding to the IMF it received in 2009 when Democrats had a majority in both houses of Congress. American taxpayers should not be forced to subsidize the foolish lending practices of foreign banks. That money needs to be taken back, before it is flushed down the toilet of European socialism.

Bill Wilson is President of Americans for Limited Government. You can follow him on Twitter at @BillWilsonALG.

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