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Vote On Cornyn Amendment For Blocking US Bailouts Of Overindebted Foreign Countries Currently On C-SPAN
Update: vote passes 94-0. O. If Italy, UK, or Japan (or, soon, the US), with their 100%+ debt/GDP need an IMF loan, they may well be out of luck. It will be viciously ironic if the US is prohibited from obtaining an IMF loan to save itself.
Currently on C-Span is the vote on the Cornyn amendment which requires the Obama Administration to evaluate any proposed
bailout of a foreign nation where that nation’s public debt exceeds its annual
Gross Domestic Product (GDP), and then to certify to Congress whether the
bailout loan will be repaid. If the Administration cannot certify that the
bailout loan will be repaid, it will be required to oppose the bailout and vote
against it at the IMF. That this is in effect a new Monroe Doctrine, as the entire world now has more debt than GDP, is not mentioned. The vote can be seen here.
Sen. Cornyn Introduces Legislation to Restrict U.S.-Funded Bailouts of Foreign Nations
WASHINGTON — U.S. Sen. John Cornyn (R-TX) today offered an amendment,
which was cosponsored by Sen. David Vitter (R-LA), to the current financial
regulatory reform bill to protect U.S. taxpayers from paying for bailouts of
irresponsible foreign governments:
“American
taxpayers have seen more bailouts than they can stomach, and the last thing
they should have to worry about are their hard-earned tax dollars being used to
rescue a foreign government,” Sen. Cornyn said. “This amendment will
help prevent American taxpayer dollars from underwriting dysfunctional
governments abroad.”
“It’s bad
enough that taxpayers have to foot the bill for the mistakes of the big banks
and the big automakers, but asking them to bail out irresponsible foreign
governments is outrageous,” said Sen. Vitter. “Our country already
owes trillions of dollars in debt. We simply can’t afford to take on
other countries’ debt in addition to our own.”
Despite
its weak political system and dysfunctional economy, last month Greece
requested a bailout from the International Monetary Fund (IMF) to help cover
its ballooning debt. For 2010, the expected IMF bailout to Greece is $20
billion and Greece is unlikely to repay that amount. Although the U.S.
currently has severe debt problems of its own, as the largest financial
contributor to the IMF, U.S. funding will comprise a major share of that
amount. In response to the pending IMF bailout of Greece, Sen. Cornyn
offered an amendment (S. A. 3986) to The
Restoring Financial Stability Act of 2010 (S.3217) to prevent
U.S. taxpayer-funded bailouts of foreign governments.
Sen.
Cornyn’s amendment requires the Obama Administration to evaluate any proposed
bailout of a foreign nation where that nation’s public debt exceeds its annual
Gross Domestic Product (GDP), and then to certify to Congress whether the
bailout loan will be repaid. If the Administration cannot certify that the
bailout loan will be repaid, it will be required to oppose the bailout and vote
against it at the IMF.
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say bye-bye Euro.
funny. Nothing in there about funneling the money thru Ben's shoppe of horrors via liquidity lines (anything like coke lines).
I certify that "they will certify that the loan will be repaid".
Well, I certified it so it must mean it's certified.
Certified? By this or any administration. Please.
I guess that's one way to forestall being voted out of office.
This would get vetoed. Presidential advisors would tell him about all those sunk costs into "diplomacy." Boo-hoo, all those cute little parties in your tacky little embassies, down the drain...
Is there real gold in that Nobel Prize?
Not really. Many of those voting the reappoint Bennie Mae and against Audit the Fed can already made their political tombstones. Being publicly assoicated with the Banksters Party (B) will stick to them like stink to a skunk.
There's just as much political risk to veto a 96-0 vote than there is to pass the bill and have Obama say: "Greece needs more IMF funding? They're good for it". At some point (likely sometime in early November), Obama will realize the certainty of a one-term presidency and lame duck-ness.
And it will actually be a bit liberating for him, actually.
Man, I wish I would've known about this one earlier so I could hound my Senators. Thanks for bringing it to our attention oh ye good people of ZH.
Who owns the Whores in your State?
http://www.opensecrets.org/
Here is a Hint! "It's NOT! You!"
I'm hip to their hustles. I call these fuckheads in my state at least once per week.
Political 'contributions' are merely the tip of the iceberg.
Let's not forget inevitable parting book tours and speaking fees... and of course the mainstay... cash stuffed envelopes.
Why did you capitalize whores? Was it a typo or an insight?
The Fed can just do it behind the curtain. It's just another circus & bread bill.
C'mon, people -- Obummer is prepared to "certify" that the puckering blancmange of Larry Summers buttocks are the purest creamcheese -- who cares?
This is similar to Mike Pence's bill The European Bailout Protection Act in the house regarding bailing out greece and the euro.
http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/rep-mike-pence-r-ind-introduces-bill-to-prevent-taxpayer-bailout-of-the-euro-93719854.html
The European Bailout Protection Act would:
1) Prohibit any funds that have yet to be drawn by the IMF from being used to provide financing to any EU countries until all EU nations are in compliance with the debt to GDP ratio requirement in their own collective growth pact.
2) Require the Treasury Secretary to oppose any IMF loans to EU nations until all EU countries are in compliance with their debt to GDP ratio requirement.
The bill does not permanently prohibit the IMF from lending to these nations; it simply prohibits the U.S. from participating in the proposed European bailout.
Where The Action Is
(Reuters) - The Wall Street reform fight enters its final stages in the U.S. Senate this week with an overdue reckoning on three issues that cut to the heart of how, and for whom, the financial system works.
http://www.reuters.com/article/idUSTRE64G54N20100517
Shouldn't the US ask for an IMF bailout BEFORE passing this amendment? LOL!
"nation’s public debt exceeds its annual Gross Domestic Product (GDP)"????
Oh. And who hand picked by Rahm Emanuel gets to do the math on that?
But each bailout is already appropriated according to a vote into Law, isn't it?
"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."
- Article I, Section 9, Clause 7 of the United States Constitution
But what will the sheeple think surely thats the key here? You know all those super clever fund managers Bloomarks is always quoting with something hundred billion saying don't worry the recovery is intact? If they think this is bad...... and obstensibly it does look bad for bailing out others like Belgium or Japan. Sure its just bread and circus, but if the sheeple eat the bread.....
Isn't the market about sentiment. Least thats what all the smart people seem to tell me and seeing as they have billions of printed dollars to carry....the must be smarter then me and even ZH.
On another, related topic, I strongly believe we need an internationally recognised sarcasm font.
Billionaires ain't got shit on the mega-trillion derivatives market.
If they keep closing desks and getting ready to decouple from the Fed, there's going to be a shitload of money sloshing around.
Maybe the government will just seize it and say "hey, deficit paid, now you all work for Obama digging ditches for $200/hour. Yayyy!"
“American taxpayers have seen more bailouts than they can stomach, and the last thing they should have to worry about are their hard-earned tax dollars being used to rescue a foreign government,” Sen. Cornyn said. “This amendment will help prevent American taxpayer dollars from underwriting dysfunctional governments abroad.”
It's hilarious to have our spendthrift, dysfunctional government call others dysfunctional.
It's what's called "projection" in psychology. They will apply their own negative qualities onto others to avoid coming to terms with their own corruption.
Wag the dog...
I'm glad no one in the media has brought up the elephant in the room - NATO. What happens with NATO?
I hope it goes away, personally... along with every other acronym.
They'll just fudge their GDP numbers! Dont know whats worse
As Krugman said: USA is not Greece.
G-Pap, the Greek Obama replica, declared 7 months ago: Change or Sink.
Does this quote ring a bell?
Apropos, Greeks voted for Change. :P
Since when do they follow laws anyway?
Blanche...Still Depending On The Kindness of [Wall Street]
The narrative that's been building that Lincoln's tough derivatives reform was all about trying to solidify Dem/anti-Wall Street support before her primary tomorrow, and that further, once the primary was over, she and Dem leadership were ready to gut the reforms.
Now comes confirmation, direct from the horses' mouths.
http://joan-mccarter.dailykos.com/
Ironic, considering that we are the ultimate recipients of bailouts from the rest of the world by having the reserve currency. Doesnt mean we can barbecue the rest of the world's balls and call them out anyway.
ok, so in the worst case USA will vote agaisnt the IMF bailout. First, does USA have majority or a veto? I don't think so. Therefore, short of USA leaving the IMF, USA will be a participant in the IMF bailout whether or not USA votes for it.
Second, while this amendment lays down restrictions regarding IMF loans, it does nothing to prevent... say exchanges of foreign sovereign debt for US dollars
Euro Swaps are a winner, in the lie that is our Reality...
“American taxpayers have seen more bailouts than they can stomach, and the last thing they should have to worry about are their hard-earned tax dollars being used to rescue the same damn banks” Sen. Cornyn said. “This amendment will help prevent American taxpayer dollars from underwriting dysfunctional governments abroad and preserve that capital for underwriting our own dysfunctional government”
Working Paper No. 10/123: Fiscal Stimulus and Credibility in Emerging Countries
Author/Editor: Kandil, Magda E. ; Morsy, Hanan
Summary: Across a sample of thirty four emerging countries, the evidence shows the frequent existence of a pro-cyclical fiscal impulse. However, the scope for countercyclical policy increases with the availability of international reserves as it enhances credibility and mitigates concerns about the effect of expansionary fiscal policy on the cost of borrowing and debt service. The paper also examines the effectiveness of the fiscal policy in emerging countries in the short- and long-run and its underlying conditions, which does not appear to be uniform. In some cases, contractionary fiscal policy could stimulate growth in the short-run, if fiscal tightness lowers the cost of borrowing and debt service, and mitigates concerns about debt sustainability. However, an increase in international reserves is evident to mitigate these concerns. On the other hand, high inflation increases concerns about the impact of fiscal spending on inflationary expectations and the cost of borrowing, countering the effectiveness of the fiscal stimulus on output growth in the short-run. Where the debt burden is high, fiscal expansion has a longlasting negative effect on real growth.
http://www.imf.org/external/pubs/cat/longres.cfm?sk=23687.0
.
Ok. So let us assume for a minute, that it is certified to Congress that the debt can and will be repaid, then it is defaulted on. Then what? What is the penalty? I say the penalty should be President in jail, FED Chair in jail, and Treasurer in jail for 20 yrs min. I haven't read anything in the amendment regarding such an event. And we all know it will happen.
Since when does the Federal Reserve follow Congress's mandate ??!?
there will be some loophole that says if emergency measures are really, really needed, they will still be permitted. if recent euro shenanigans are anything to go by, nobody will be allowed to fail. or should i say, no BANKS will ever get blown up through sovereign debt collapse.
i think that's called exigent circumstances IIRC, already been used before, they'll use it again.
Slightly off topic but having to do with a scum bag politikian,
KAFRIGGINBOOM!!
http://www.nytimes.com/2010/05/18/nyregion/18blumenthal.html
EURUSD / EURJPY continues to show buying support on intra day chart.
EURGBP daily chart gives mild bullish warnings.
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
“American taxpayers have seen more bailouts than they can stomach, and the last thing they should have to worry about are their hard-earned tax dollars being used to rescue a foreign government,” Sen. Cornyn said.
Still burns me up that he voted for the bailout, for TARP, etc. in spite of overwhelming constituent feedback against the bills. My guess - he's trying to score points with tea party people with a largely meaningless gesture. I don't think his bill constrains the Fed's credit swap lines from backdoor bailouts on the backs of American taxpayers.
I just got back from a trip to Italy. It was more remote than I had expected. Low bandwidth, seemed 2-5 years behind the curve. That being said, the food I ate over there was picked that day, not like the Mexican tomato that was on my grocery produce aisle. Not all GDP growth is the same. The PIIGS are broke on the books, but they make up for the short fall with cheaper local goods and services. It's not going to help them in the global picture, but they won't have far to fall.
It's all a scam!
Who is going to hold the administration accountable? Is it the voters???
Ha!