This page has been archived and commenting is disabled.

Senator Jim DeMint: "U.S. Taxpayers Are Helping Finance Greek Bailout"

Tyler Durden's picture





 

From Senator Jim DeMint

The International Monetary Fund board has approved a $40 billion
bailout for Greece, almost one year after the Senate rejected my
amendment to prohibit the IMF from using U.S. taxpayer money to bailout
foreign countries.

Congress didn’t learn their lesson after the $700 billion failed
bank bailout and let world leaders shake down U.S taxpayers for
international bailout money at the G-20 conference in April 2009. G-20
Finance Ministers and Central Bank Governors asked the United States,
the IMF’s largest contributor, for a whopping $108 billion to rescue
bankers around the world and the Obama Administration quickly obliged.

Rather than pass it as stand-alone legislation, President Obama
asked Congress to fold the $108 billion into a war-spending bill to
send money to our troops.

It was clear such an approach would simply repeat the expensive
mistake of the failed Wall Street bailouts with banks in other nations.
Think of it as an international TARP plan, another massive rescue
package rushed through with little planning or debate. That’s why I
objected and offered an amendment to take it out of the war bill. But
the Democrat Senate voted to keep the IMF bailout in the war spending
bill. 64 senators voted for the bailout, 30 senators voted against it.

Only one year later, the IMF is sending nearly $40 billion to bailout Greece, the biggest bailout the IMF has ever enacted.

Right now, 17 percent of the IMF funding pool that the $40 billion
bailout is being drawn from comes from U.S. taxpayers. If that ratio
holds true, that means American taxpayers are paying for $6.8 billion
of the Greek bailout. Although the $108 billion extra that Congress
approved for the IMF in 2009 hasn’t yet gone into effect, you can bet
that once it does Greek bankers will come to the IMF again with their
hat in hand. And, if other European Union countries see free money up
for grabs they could ask the IMF for bailouts when they get into
trouble, too. If we’ve learned anything from the Wall Street bailouts
it’s that just one bailout is never enough.

To hide the bailout from Americans already angry with the $700
billion bank bailout, Congress classified it as an “expanded credit
line.” The Congressional Budget Office only scored it as $5 billion
because IMF agreed to give the United States a promissory note for the
rest of the bill.

As the Wall Street Journal wrote at the time, “If it costs so little, why not make it $200 billion. Or a trillion? It’s free!”

Of course, money isn’t free and there are member nations of the IMF
that won’t be in a hurry to pay it back. Three state sponsors of
terrorism, Iran, Syria and Sudan, are a part of the IMF. Iran
participates in the IMF’s day-to-day activities as a member of its
executive board.

If the failed bank bailout and stimulus bill wasn’t enough to prove
to Americans the kind of misguided, destructive spending that goes on
in Washington this will: The Democrat Congress, aided by a few
Republicans, used a war spending bill to send bailout money to an
international fund that’s partially-controlled by our enemies.

America can’t afford to bail out foreign countries with borrowed
dollars from China and certainly shouldn’t allow state sponsors of
terror a hand in that process.

This has to stop if we are going to survive as a nation. Congress
won’t act stop such foolishness on its own. The only way Americans can
stop this is by sending new people to Washington in November who will.

Sen. Jim DeMint is a Republican U.S. Senator from South Carolina.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 05/06/2010 - 07:09 | Link to Comment SteveBob
SteveBob's picture

This guys should run for GOP nomination in 2012.

Thu, 05/06/2010 - 08:23 | Link to Comment Noah Vail
Noah Vail's picture

He's an idiot. This is what the IMF was created for. He should be demanding US withdrawal from the IMF.

Thu, 05/06/2010 - 08:40 | Link to Comment docj
docj's picture

The International Monetary Fund (IMF) is an organization of 186 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

From: http://www.imf.org/external/about.htm

Yep, I see "Bailing out TBTF banks who made really bad gambles with other peoples' money" in there.  Absolutely.  Right there.  Clear as glass.

Thu, 05/06/2010 - 10:57 | Link to Comment Tipo anónimo
Tipo anónimo's picture

Truly clear as glass.  What else do you think that "secure financial stability" means?  Giving micro-loans to underpriveleged shoemakers in Nepal?

 

Thu, 05/06/2010 - 12:02 | Link to Comment ConfederateH
ConfederateH's picture

You are right, he is an idiot.  Tax revenues have not covered expenses for decades.  The US dollar as the worlds reserve currency has allowed the US to live beyond her means for decades too.

The US creating electronic dollar bits to bail out Greece has far more to do with robbing all dollar holders around the world than with robbing "US taxpayers".

Thu, 05/06/2010 - 14:01 | Link to Comment Ripped Chunk
Ripped Chunk's picture

DeMint is politicking as usual. DeMint can chew on De Mint in the urinal.  He has destroyed his credibility with his past actions. He thinks no one will remember.

As soon as the electorate stops letting these cockroaches treat them like morons, the quicker "change you can believe in" will actually be seen. 

Thu, 05/06/2010 - 22:36 | Link to Comment Magat Guru
Magat Guru's picture

+100 euros for "De Mint in de urinal"!

 

Yep, ol' Jim is still looking for a parade to get in front of, and not get run over by it for marching the wrong way!

Thu, 05/06/2010 - 07:11 | Link to Comment godfader
godfader's picture

I've got news for this genius. The US was also financing the Ukrainian, Hungarian and dozens of other bailouts via the IMF in recent years. Why didn't Mr. Senator get a clue then? Why now?

Thu, 05/06/2010 - 08:11 | Link to Comment cossack55
cossack55's picture

Don't forget the Mexican bailout in the 90s.  did he vote for that?

Thu, 05/06/2010 - 08:17 | Link to Comment Zombie Investor
Zombie Investor's picture

He became a congressman in 1999 and a senator in 2005 - how the hell could he vote for the Mexican bailout in 1995?  This ought to be interesting...

Thu, 05/06/2010 - 09:02 | Link to Comment koaj
koaj's picture

it was also outside a vote. clinton did it by executive order, presuming Robert Rubin/GS gun at his back as he did it

Thu, 05/06/2010 - 07:11 | Link to Comment HellZero
HellZero's picture

You cant keep TD out of bed in the morning on a week like this!

Thu, 05/06/2010 - 07:22 | Link to Comment Mako
Mako's picture

All they are doing is trying to keep the system going a little longer, don't worry in time the whole thing is coming down. 

I don't know what Tyler is so upset about.  It's not sustainable and never was.  Isn't it about time this blog address the root issue of the problem instead of the side-show?  It was over before Tyler was even born, just the exact date and time was not known.

Eventually these trading markets will be destroyed, the banks will be destroyed, all the ATMs will stop pushing out cash, those credit cards will stop working, etc.  Then humans will feel the force of a collapse credit system. 

Humans want to do the crime without doing the time, sorry the equation always enforces the time.

 

Thu, 05/06/2010 - 07:44 | Link to Comment taraxias
taraxias's picture

Okay, mako, we got it, we can't run away from the equation.

As a suggestion to save all of us time, you don't have to keep reposting the same words. Just be brief and say something like "mako here" and we'll automatically know what it means.

P.S. Trying to find a calendar that has "in time" and "eventually" on it but I haven't had much luck so far.

 

Thu, 05/06/2010 - 08:00 | Link to Comment Mako
Mako's picture

Hey I am just responding to Tyler not addressing the problem.   I mean he blames everyone but himself and the actual issue. 

You can start throwing bankers out windows and it isn't going to help, you can cry to your Congressman, you can cry to the President, you can cry to anyone you wish but it's not going to stop the system from collapsing.

It's game over, it would seem like actually addressing the problem would be worth while so that stupid humans don't repeat the same mistake over and over?  Not once has he addressed the root cause of this and no it's not bankers or Congress or pension funds or any this other side-show crap.

I mean I don't get how Americans can even think they are getting a raw deal at throwing some last ditch cash at Greece, Americans clearly been the winners out of this stupid system for the last 65 years.   Let me see, does Tyler believe Americans have actually worked for what it has, if it did it wouldn't need a credit system.

I heard someone on TV today say "they are kicking the can".  Well, that is the system... humans have been kicking the can since civilization started.

 

Thu, 05/06/2010 - 08:20 | Link to Comment SWRichmond
SWRichmond's picture

hyperkitty?

Thu, 05/06/2010 - 08:29 | Link to Comment Mako
Mako's picture

Not that person.  Actually I think that's a guy not gal.

Thu, 05/06/2010 - 08:40 | Link to Comment pan-the-ist
pan-the-ist's picture

Hi Mako.

There is no "you" and if there was a you, "you" don't have "free will" anyway.  There is no "God", no "Heaven" either.

It is nobody's fault and nothing can be done about it.  "We" are just sentience along for the ride.  (If you find nobody, kick him in the ass a few times, he deserves it.)

Put that in your pipe and smoke it.  It will put monetary madness in perspective.

Thu, 05/06/2010 - 08:42 | Link to Comment Mako
Mako's picture

What?

I just lost 30 seconds of my life I will never get back.

 

Thu, 05/06/2010 - 09:17 | Link to Comment pan-the-ist
pan-the-ist's picture

Your mind is like a ship that has been hung up on a rock.  It is best to go read something else for a while to give your mind a chance to recalibrate.

Thu, 05/06/2010 - 10:23 | Link to Comment B9K9
B9K9's picture

You don't know what's happening, do you?

Let me provide a touch of perspective. Most of the popular financial blogs got their starts back in 2007 because they addressed the fundamental nature of the mortgage meltdown.

Fast forward to 2009 as we began to move from market fundamentals to the politics of bailouts. Coincidentally, a new financial blog called Zero Hedge appeared on the scene with all sorts of insider reports detailing the fraud & various illegal activities.

I remember coming across this site just a few weeks after it was launched and marveling at the information sources they were posting up on the interwebs. Then came the flury of legal take-down notices and Tyler's decision to move the servers off-shore.

But time & events wait for no man. Now the world is waking to the fact that it was always a scam, so where's the thrill in discovering new cover-ups & other blatant illegal activities?

What Mako is advising Tyler is that the game is now moving on to the process of reform. And by that I don't mean audit the Fed or other such meaningless nonsense. If Tyler wishes to see ZH escape the same fate of other stale blogs which couldn't keep up with changing demands, then it is time to begin focusing on the next stage of the game.

The next stage is where the rubber hits the road. Reform might be peaceful, but as usually happens throughout history, it has its periodic 'hiccups', which is what we are seeing play out in Greece.

I've advised Mako to try and be more constructive - people understand the message. It's time to add value by analyzing how exactly the existing credit-money system is going to be modified & replaced.

Thu, 05/06/2010 - 11:04 | Link to Comment Hulk
Hulk's picture

Keep em coming Mako...

Thu, 05/06/2010 - 09:01 | Link to Comment sushi
sushi's picture

+3600

Apart from the last sentence where "monetary" should be replaced by "monastery."

Thu, 05/06/2010 - 11:17 | Link to Comment Tipo anónimo
Tipo anónimo's picture

Thanks for the laugh.

You're funny for a Frenchman (would cave be redundant) ? :)

Thu, 05/06/2010 - 08:55 | Link to Comment Miramanee
Miramanee's picture

I agree with MAKO...only in less dramatic language...

Fiat currency can only succeed where human greed (and attendant fraud) can be regulated with 100% surety. Of course, this is impossible. GREED defines humanity more so than any other "sin".

Eventually---and time will tell---human suffering will reach the tipping point, and total chaos will ensue.

Thu, 05/06/2010 - 11:19 | Link to Comment Marla And Me
Marla And Me's picture

Miramanee, Mako is talking about compound interest, not fiat currency.

Thu, 05/06/2010 - 07:31 | Link to Comment heyligen
heyligen's picture

Those clever Greeks, first they developed democracy, Western philosophy, Olympic Games... and now they are tricking Americans in paying back for a tiny bit of the damage of the biggest crooked bank swindles in history... I like those guys.   

Thu, 05/06/2010 - 10:29 | Link to Comment Psquared
Psquared's picture

The Greeks gave us Aristotle, Plato and Socrates. Together they essentially form the basis for western thought including ethics, government and morality. Is it not ironic that the beginning of the end of Western philosophy also begins in Greece?

Thu, 05/06/2010 - 07:36 | Link to Comment primefool
primefool's picture

They dont get it. Financing does'nt mean anything. "taxpayer money" is a joke - I mean do you know any taxpayer who have paid one cent more in taxes for ANY of the bailouts so far? Of course not. You see "money" itself has become corrupt in the extreme - vapor money. We can give Greece money - and make it vanish tomorrow if necessary - easy peazy. The world has gone mad - beecause of confusion over corrupt "flying Money" ( as China called it during their monetary madness during the Tang Dynasty ( 600-900AD).

Thu, 05/06/2010 - 07:51 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

Jesus, can they keep this going for another 200 years - I may have to rethink my portfolio............

Thu, 05/06/2010 - 08:07 | Link to Comment AnAnonymous
AnAnonymous's picture

200 years, I havent checked.

 

50 years, absolutely. The breaking end is when the US emits credits, flushes them around the world and catches nothing in their nets.

Largely enough oil and other hard assets to give value to any newly emitted credits at present pace for 50 years.

Thu, 05/06/2010 - 08:12 | Link to Comment AnAnonymous
AnAnonymous's picture

A large number of US citizens love to depict themselves as world saviours. Telling no tax money is involved in these bailouts cant be received by them. Dont spoil their fun.  Especially when that fun comes to them for free.

Spoiling fun is a hard offense. First, they segregate you, offering a thread to vent your perpetual routine without polluting the space of people having fun. After that, if your threads gather too many people or turn too big to ignore, they ban you.

 

The only valuable information is people claiming truth can not accept truth when it does not satisfy their ego.

On this website like any other.

Thu, 05/06/2010 - 07:57 | Link to Comment dcb
dcb's picture

if he avoided the stupid american jingoism and "terrorist" stuff he woul sound better.

Thu, 05/06/2010 - 08:02 | Link to Comment BeerGoggles
BeerGoggles's picture

Typical short minded US crap.

What was the IMF created for?

If you want US money to only be used for the US then dont bother sending it. The IMF is bailing out Greece not the US!!!!!

Thu, 05/06/2010 - 08:07 | Link to Comment Sqworl
Sqworl's picture

The US has 17.5% of IMF responsibility vs. Germany with only 8%..Who's carrying the IMF????

Thu, 05/06/2010 - 08:26 | Link to Comment SWRichmond
SWRichmond's picture

Wrong.  U.S. taxpayers are bailing out banks, including U.S. banks, and as TD reported elsewhere the taxpayers' (IMF-funded) debt is subordinated to the existing bank debt.  Is this too complicated for you?

http://www.bloomberg.com/apps/news?sid=a7h1lGnar8Gg&pid=20601087

April 29 (Bloomberg) -- JPMorgan Chase & Co., the second- biggest U.S. bank by assets, has a larger exposure than any of its peers to Portugal, Italy, Ireland, Greece and Spain, according to Wells Fargo & Co.

JPMorgan’s exposure to the five so-called PIIGS countries is $36.3 billion, equating to 28 percent of the firm’s Tier-1 capital, a measure of financial strength, Wells Fargo analysts including Matthew Burnell wrote today. Morgan Stanley holds $32.4 billion of debt in the region, which equates to 69 percent of its Tier 1 capital, Burnell wrote.

“Regulatory data suggests JPMorgan’s exposure is largest in aggregate, but Morgan Stanley held the largest aggregate exposure to the PIIGS relative to Tier 1 capital,” the analysts wrote. Overall U.S. bank “exposure to Greece is lower than exposure to Ireland, Italy and Spain.”

Thu, 05/06/2010 - 09:12 | Link to Comment Miramanee
Miramanee's picture

@ SWR,

The taxpayer question is more complex I think. It would appear, on the surface, that the U.S. taxpayer is 'on the hook' for all of these bailouts, for the massive (and fraudulent) QE operations of the FED, for the bank cover-ups and syndicate-like activities of Wall Street, and Capitol Hill, etc.

But there is an OPERATIONAL distinction that I think we need to acknowledge. As Ben Bernanke said, "...all Federal spending is done by using their computer to mark up numbers in bank accounts..." In other words, federal spending and taxation are mutually exclusive operations. The government does not need tax dollars in order to spend money: they spend money by creating it in the reserve accounts of their clientele.

It would appear that, at some time, the American taxpayer is going to have to be fleeced in order to payback all of these borrowed and spent dollars. But the government---and in particular all of the people involved in FED operations---understand that spending and revenue are not implicitly and temporally connected.

My question then is this: when and why, in fact, WILL the American taxpayer have to pony up for all of these bailouts and backstops?

Thu, 05/06/2010 - 09:17 | Link to Comment SWRichmond
SWRichmond's picture

Even just the act of printing money steals from taxpayers.  Inflation is widely recognized as theft from savers.  Money-printing dilutes all then-existing money, stealing some of its value.

The only other possibility is that debt is added to the US debt, and that taxpayers are on the hook for it.

Thu, 05/06/2010 - 09:29 | Link to Comment Miramanee
Miramanee's picture

@ SWR,

Good points.

A couple of observations:

1. I understand that inflation of the money supply eventually devalues currency...and leads down the road to COST inflation. Hell, we're experiencing cost inflation right now (food and energy), even during a DEFLATIONARY period. HOWEVER...there are those who would argue that federal spending causes inflation (per se) only occurs when excess capacity disappears and when you have full employment. On some levels, this is an 'apples and oranges' discussion. While you and I are looking at inflation from a m onetary standpoint, many Post-Keynesians look at it from the standpoint of demand and capacity vs. spending.

2. Your second point again leaves me scratching my chin....metaphorically of course. Again, I think that it is FAIR to argue that the U.S. Taxpayer is only on the hook for increasing federal debt IF in fact (A) the government plans upon, or needs to, repay these obligations, or (B) if the taxpayer, sometime down the road, still believes that he NEEDS to pay his taxes (and thus needs to keep finding ways to accumulate dollars) Would you be surprised if the government repudiated its obligations in some manner? Would it "bankrupt" the nation?? And...since all debt obligations abroad are held at the FED---interest bearing accounts vs. spending accounts, but all at the FED---isn't the payment of debt (to say China) simply a matter of shifting funds into different accounts at the FED? What does the taxpayer have to do with that?!?

Thu, 05/06/2010 - 09:44 | Link to Comment SWRichmond
SWRichmond's picture

many Post-Keynesians look at it from the standpoint of demand and capacity vs. spending.

I think this is developing a theory to fit their desired outcome based on observations.  In other words, they're lying their asses off.  Currency debasement occurs, whether perceived or not, at the moment the new money is created.  The only reason we're not seeing "inflation" in the classic sense right now is the cacaphony of MSM pundits telling people there isn't any. 

Money velocity as it is currently debated is a load of crap.  You cannot replace credit, which has no store of value function, with newly printed "money-thingies", which are supposed to have a store of value function, without immediately diluting all currently-existing money.  I don't care if it is held in reserve accounts.   The fact that it exists is all that matters.

http://seekingalpha.com/article/162995-defaulting-in-plain-sight

Your second point relies on completely disconnecting money from it's store of value function (something of value) while retaining its ability to be exchanged for things of value, and as such it relies on people being stupider than they have ever been historically.

Thu, 05/06/2010 - 09:54 | Link to Comment Miramanee
Miramanee's picture

@ SWR

Excellent points.

I'm not purporting to support that which I am positing. Only working to glean insight from others on a complex issue.

I tend to agree w/you about the Post-Keynesian, neoclassical thesis. These guys hang out in dark rooms crunching numbers, but their hypotheses are divorced from reality---particularly as pertains to issues of social class and production.

As for the money-value disconnect, we have entered a period in time in which all currencies of import and fiat currencies. As such, the idea of money has in fact shifted away from "store of value" functionality and into the realm of pure trust and belief. It is faith-based economics, 100%. I think that we are witnessing the beginning of the end of this era, as 'full faith a credit' will, over the next several decades, become the object of scorn and derision.

Thu, 05/06/2010 - 10:32 | Link to Comment Psquared
Psquared's picture

Maybe the plan all along was for the US to acquire world dominance not just militarily but economically. With the dollar crushing the EURO the EU has all but collapsed. The only safe haven for capital is the US. China may soon collapse as well.

Could it be that we will come out on top after all?

Thu, 05/06/2010 - 09:41 | Link to Comment AnAnonymous
AnAnonymous's picture

You want to save? Dont play a consumption game.

In a consumption game, any saving is just freed space for others to consume.

 

As to postponed debt, who can tell about the future? One bird in the hand is better than two in the bush. Everything points at it is much better to consume now and postpone payment later.  

Thu, 05/06/2010 - 08:47 | Link to Comment Fraud-Esq
Fraud-Esq's picture

The IMF (bank cabal) is bailing out its member banks. Period. It just happens to be Greek debtors this week. Next week, it will be a collection of debtors in another geographical boundary. Forget the names of countries, doesn't matter. Bailout = more misery for debtors. creditors....get to live another day to see who's the last standing. 

Thu, 05/06/2010 - 08:09 | Link to Comment Conrad Murray
Conrad Murray's picture

Mako,

I am saying this with the utmost respect and sincerity. We all get your point. Why doesn't TD address the root issue? Who knows. But look, why don't you? Take some time to write an article explaining it all however you see fit. Submit it for publication, and post it in the forums here. Then, whenever you feel the need to explain it you can just post the link. You say the same thing over and over without really saying anything. You have a very important point that should be addressed, but it's time to put up or shut up.

Thu, 05/06/2010 - 08:20 | Link to Comment docj
docj's picture

Better late than never, I suppose.

Thu, 05/06/2010 - 08:28 | Link to Comment crosey
crosey's picture

America's founders warned of getting into foreign entanglements.  At that time, it was Europe.

However, to further their interests, many since have ignored this wisdom and plunged us into financial entanglements, all over the world.  THIS WAS NOT MEANT TO BE.

So, when you look at this mess, seek the root cause.  Constitutionally, our so-called leaders have taken us WAY OFF track.

And while we're at it, let's repeal the 16th Amendment, and shrink the bloated, wasteful, inept, fat-ass, useless, federal government. 

Thu, 05/06/2010 - 08:34 | Link to Comment Hansel
Hansel's picture

FYI, the U.S. portion of the IMF bailout is larger than 17%. The IMF takes deposits, but then qualifies its resources into "usable resources", probably because the deposits of some countries (those currencies) aren't worth much. From a little tidbit here.

Thu, 05/06/2010 - 08:42 | Link to Comment Fraud-Esq
Fraud-Esq's picture

Doesn't he know we're not borrowing it from China, we're just printing it and so long as everyone accepts it minus inflation, we are THE SYSTEM. 

Thu, 05/06/2010 - 12:21 | Link to Comment ConfederateH
ConfederateH's picture

Well put, fraud!  If the US had tried to print dollars in 1971 like it has been for the last decade, the rest of the world would have called the bluff.  But decades of fraud and propaganda have numbed the thinking of the sheeple to such a degree that they can't comprehend what is going on around them.  The US has had a blank-creditcard for decades and has run up a tab approaching the hundreds of trillions.

Thu, 05/06/2010 - 08:45 | Link to Comment Bruce
Bruce's picture

 

The purpose of CB's is to transfer wealth from citizens to banks.  This is but another example.  Privatization of profits, and socialization of losses.  Is it any surprise that the Fed doesn't want to be audited?  Abolish the Fed, and all CB's.

Dear Senator (Senator’s Name Here),
The International Monetary Fund (IMF) recently announced a TEN-FOLD expansion of the Fund’s borrowing arrangements via New Arrangements to Borrow (NAB).  The NAB multilateral facility will – according to the following press release - expand from $50B currently to $550B, for an increase of $500B, or HALF A TRILLION DOLLARS.

http://www.imf.org/external/np/sec/pr/2010/pr10145.htm

Normally, I would not contact your office with the financial details of the IMF, however, the United States of America (USA) is a key participant in, and contributor to said fund, and will be responsible for a commensurate TEN-FOLD increase in its share of debt obligations, which is approximately 20%. 

The USA is currently responsible for about $10B.  Following the NAB change, the USA will now be responsible for about $105B.  This is another  USA taxpayer (read constituent) obligation which has increased massively during the (ongoing) global financial crisis.  These monies will no doubt be used to address (read bailout) the still unresolved financial crisis unfolding in the Eurozone, with such notable debtor nations as Portugal, Italy, Greece, and Spain (PIGS) as likely recipients of bailout “loans”, again at USA taxpayer expense.

Senator (Senator’s Name Here), please explain the process by which these  TEN-FOLD debt obligation increases for the USA taxpayer became approved.  I do not recall Congress voting on said IMF funding increases.  According to the Constitution of the USA, any increases in borrowing (debt) are the responsibility of Congress:

Article 1, Section 8, Clause 2: “To borrow Money on the credit of the United States.”

Article 1, Section 9, Clause 7: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.”

The USA is the largest contributor nation to the IMF, and just increased its obligations TEN-FOLD to $105B.  Senator (Senator’s Name Here), is the USA to bailout not only the private financial institutions of the USA, but now also must we bailout Europe?  Was there a Congressional vote on this increase, as there should have been by law, or did Congress yet again abdicate its authority over financial, and budgetary matters to the Federal Reserve, and the Treasury?  Do you have any idea what these agencies are doing with public money?  Who is managing the finances of this country?  Congress, or the bankers (including the Federal Reserve Bank)?

Senator (Senator’s Name Here), I hope the fact that this letter to you is dated April 15th, 2010 will not go unnoticed.  As you are well aware, today is the date that Americans are obligated to pay our taxes to our government.  We pray that these funds will be used wisely, although I must say that as I look around I see the need to pray more earnestly.

To recap:  The IMF has increased its “borrowing arrangement” TEN-FOLD.  The USA’s obligations to the IMF commensurately increased TEN-FOLD as well.  The USA taxpayer is “on the hook” for these obligations.  It is my sincere hope that taxpayer monies will not be used to bailout the Eurozone. It is bad enough that taxpayer-funded bailouts occurred here at home.  Americans are rapidly becoming serfs, vassals, and slaves in their own country owing to the enormous debt burden that is being forced upon us.  We will not sit by idly and let this continue.

Thu, 05/06/2010 - 09:10 | Link to Comment Invisible Hand
Invisible Hand's picture

I had to admit it, but I am starting to buy into it: It's the Bankers fault!

It all seems to come down to, what is good for the banks?

I say: Nationalize the banks, break them up.  Zero out stockholders, make bondholders and depositors whole (as much as possible) and sell off bank franchises to recover more money.  Don't allow any bank to be bigger than regional and put high capital restrictions on them (and enforce them).  Force them to hold loans they originate and kill Fannie and Freddie.  Make bank officers personally responsible if banks fail.

Will this hurt the economy (yes, big time).  Is it better than collapsing the economy (we're almost there, and yes).

No easy way out from here.  Standard of living going to fall? (yes).  Free trade going to end? (yes).  Federal govt going to shrink? (yes),  Everyone going to have to use family and friends as their safety net? (yes)

All tough but better than the alternative.  Get tough now or get ready for Mad Max.  Make hard choices or have no choices.  Get used to it!

PS. Greece must be destroyed!

Thu, 05/06/2010 - 09:19 | Link to Comment SWRichmond
SWRichmond's picture

The best the banks can hope to achieve at this point IMO is being allowed to survive in some banking-as-public-utility model.  Once this sucker gets rolling they'll be damned lucky to stay alive at all.  Public sentiment hasn't even begun to get ugly here in the U.S.

Thu, 05/06/2010 - 09:21 | Link to Comment docj
docj's picture

Heh - great minds think alike, and evidently so do ours.

Cheers -

Thu, 05/06/2010 - 09:32 | Link to Comment SWRichmond
SWRichmond's picture

Public utility-model banks with strict capital requirements, lending standards and leverage ratios don't need a central bank "lender of last resort", do they?

:)

Thu, 05/06/2010 - 09:42 | Link to Comment docj
docj's picture

Nope, they don't.

Big selling point, that.

Thu, 05/06/2010 - 12:29 | Link to Comment SWRichmond
SWRichmond's picture

Not to mention drab, boring, careful, accountant-like bankers...

Thu, 05/06/2010 - 09:20 | Link to Comment docj
docj's picture

There's certainly a compelling argument to be made that banks - who have more-or-less explicit backstopping by the Fed.GOV - serve a more-or-less "utility" function and, so long as we're going to have publicaly regulated utilities, ought to be treated as such.

At this time in our history, I'm more than ever inclined to buy into that argument.

Instituions who do wish to be so regulated ought never enjoy such explicit (or even implicit) recourse to such a lifeline.  They can then be free to gamble all they want with "their own money" and caveat emptor.  But the arrangement we have now, TBTF and all that comes with it, simply fails for everyone other than those on the receiving end of the bailout.

Thu, 05/06/2010 - 09:22 | Link to Comment pan-the-ist
pan-the-ist's picture

In short, treat the banks like utilities and make their books completely transparent?  Lend money at 6 percent and pay 4 percent for savings?  I like it.

Thu, 05/06/2010 - 10:27 | Link to Comment earnyermoney
earnyermoney's picture

Let's not forget the hedge funds. If we treat banks as utilities then the systemic risk will migrate to hedge funds like the former LTCM. Hedge fund that was bailed out by Bill Clinton, Robert Rubin and Alan Greenspan.

Thu, 05/06/2010 - 09:04 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

In 2012 it will not matter.  Looks like that is the way of the World right now.

Thu, 05/06/2010 - 09:25 | Link to Comment glenlloyd
glenlloyd's picture

He's really just using this to incite more anger from the population, which isn't necessarily a bad thing but overall he's been pretty disingenuous regarding the rape / pillage of tax payers.

He's right of course, it's not good, but you're not going to get it stopped now, the only way this will stop is to bring the system down, otherwise this is just another blip on a long road of govt badness.

Thu, 05/06/2010 - 09:41 | Link to Comment Yes We Can. But...
Thu, 05/06/2010 - 09:43 | Link to Comment AnAnonymous
AnAnonymous's picture

Noticed another funny thing. When the IMF is saving the world, that is the US tax payers money. When the IMF is destroying some countries here and there, it is no longer US tax payers money but a foreign entity.

Thu, 05/06/2010 - 10:24 | Link to Comment Dr. Goose
Dr. Goose's picture

There are two indisputable facts 
That toppled the Greeks on their backs: 
Every third Greek today 
Works for government pay, 
And the rest are evading their tax.
 

Thu, 05/06/2010 - 11:37 | Link to Comment Mitchman
Mitchman's picture

+10!  LMAO

Thu, 05/06/2010 - 10:29 | Link to Comment BeerGoggles
BeerGoggles's picture

Noticed another funny thing. When the IMF is saving the world, that is the US tax payers money. When the IMF is destroying some countries here and there, it is no longer US tax payers money but a foreign entity.

Welcome to the most powerful small minded nation on earth.

Thu, 05/06/2010 - 12:05 | Link to Comment Ripped Chunk
Ripped Chunk's picture

For Bill on Lawmaker Trading, Delay Is Long and Short of It

http://online.wsj.com/article/SB10001424052748704866204575224631314927058.html

Vote them all out as soon as they come up for re-election. It is the only way.

DeMint is politicking as usual. DeMint can chew on De Mint in the urinal.

As soon as the electorate stops letting these cockroaches treat them like morons, the quicker "change you can believe in" will actually be seen. 

Do NOT follow this link or you will be banned from the site!