The Women Come Out Swinging: First Merkel, Now McMorris Rodgers Joins The Contra-Geithner Chorus
Earlier today we noted that German Chancellor Angela Merkel ridiculed Geithner's declining influence ahead of the upcoming G-20 by not only openly ignoring his call to Keynesian arms, but saying that what he is doing is tantamount to long-term economic suicide: “If we don’t get onto a path of sustainable economic growth but have rather a growth bubble, then if the next crisis comes we won’t be able to pay for it." Well, as the joke goes, women once again demonstrate more testicular fortitude than their XY companions: shortly after this announcement, Rep. Cathy McMorris Rodgers (R-WA), who previously warned against the $100 billion U.S. burden to bail out Europe via the IMF, is now blasting Geithner's "Spend and Borrow" policies to be advocated at the G20 summit in a letter sent to the tax-challenged Keynesianite (enclosed), further saying that the "president is doubling down on the path to bankruptcy.”
“I have deep, grave concerns about the President’s handling of the global economy,” said Rep. McMorris Rodgers. “Last month, President Obama worked behind the scenes to craft a $900 billion bailout of the European Union – a bailout which will cost U.S. taxpayers between $50-100 billion. Even supporters of the bailout - such as German Chancellor Angela Merkel - acknowledged that the bailout would only ‘buy time’ to get European governments off their spend-and-borrow addiction. Now, incredibly, the Obama Administration – standing alone, against our European allies – is working to facilitate that addiction by vocally opposing much-needed austerity measures. While Europe - to its credit - may be learning its lesson, the President is doubling down on the path to bankruptcy.”
In her letter to Secretary Geithner, Rep. McMorris Rodgers wrote, “We are disturbed to know that despite Europe’s growing debt crisis the United States continues to push policies in the international community that promote unsustainable global government borrowing and spending… Despite the Administration’s efforts to spend the nation back into growth and prosperity, we now face record annual deficits, a record debt level of more than $13 trillion, and an unemployment rate that hovers just below 10%...Debt problems cannot be solved with more debt. Just look at Greece.”
McMorris Rodgers and Rep. Mike Pence previously introduced a Congressional Resolution, H. Con. Res 279, which opposed US participation in the European bailout. Obviously, it did not pass.
Below is a copy of the letter sent by the Congresswoman to the SecTres.
The Honorable Timothy F. Geithner
United States Department of the Treasury
Dear Secretary Geithner:
We write in anticipation of the G-20 meeting to be held this coming weekend in Toronto, Canada and to express our concern with the reported policies advocated by the United States to address the global financial crisis. In particular, we are disturbed to know that despite Europe’s growing debt crisis the United States continues to push policies in the international community that promote unsustainable global government borrowing and spending. The United States’ position is particularly disturbing given the evidence that suggests these stimulus policies will put an even larger number of European nations, and the world, in financial peril. We need not look any farther than Greece to understand the implications of runaway spending and mounting deficits and debt.
Indeed, the October 2009 IMF Financial Stability Report demonstrates the impact that additional spending will have on the global economy. This report reveals that global borrowing will total $3.9 trillion in 2010, with global debt reaching 137 percent of gross domestic product. The same report shows that global borrowing averaged less than a trillion dollars cumulatively between the years 2002 and 2008. As most world leaders now recognize, implementing excessive borrowing and spending policies will put nations on the brink of a debt crisis. To quote German Chancellor Merkel in Seoul, Korea “growth cannot come at the price of high state budget deficits.” It is important to note that the recent elections in Great Britain was as much about excessive spending as any other issue -- demonstrating that sovereign debt and default is top of mind of individuals and leaders world-wide.
Moreover, it is clear in this country that excessive government spending policies have not worked. Despite the Administration’s efforts to spend the nation back into growth and prosperity, we now face record annual deficits, a record debt level of more than $13 trillion, and an unemployment rate that hovers just below 10 percent. In fact, 2009, the annual deficit was approximately 42 percent of all revenues and our external debt of $14 trillion was almost equal to gross domestic product. Debt problems cannot be solved with more debt. Just look at Greece.
We urge you to reconsider the Administration’s borrowing and spending policies both here and abroad, particularly at a time when fiscal restraint is necessary for the future viability of the United States and the world. Other nations are recognizing the need to reign in spending. So, should we. We look forward to hearing your response.