Republicans Demand Block Of US IMF Funding To Bail Out Europe

Tyler Durden's picture




 

In an odd coincidence, we were just updating the notional amount of FX swaps that the Fed has conducted with Europe in the past week, when we noticed that the GOP has finally made it an issue to fill in the gray area void of whether or not the US will be required to fund the IMF bailout of Europe. Tangentially, the Fed's USD swaps - an indicator of dollar-denominated last resort liquidity - just hit a 2012 high of $84.5 billion, increasing by $2 billion from the $82.5 billion in the prior week which makes us scratch our heads just how is it that Europe is "getting better" if instead of declining, usage of USD swaps is increasing confirming interbank liquidity is non-existence. This merely confirms that 4 weeks after peaking at a multi-year high of $85.4 billion in the last week of December, the European liquidity situation has once again started to deteriorate. It also means that the "self-reported" to the BBA 3M USD (but it's 'declining') is and continues to be about as worthless as any data out of the NAR. Finally, it disproves that statement under oath that Bernanke made to Congress that he would not bail out Europe. However, while Bernanke does not have any direct checks and balances-type supervision (the private Fed is merely beholden to its bank supervisors - just note the Class A directors on the FRBNY's Board) and does not have to concern himself too much with the nuances of perjury, the same can not be said about the US Secretary of the Treasury, for at most another 11 months, Tim Geithner, who doesn't have very powerful interests watching over him. It is Tim Geithner who would ultimately be the person responsible for permitting any IMF (of which America is the largest quota member, and thus, funder) capital transferm in which US taxpayer capital is used to rescue the lost cause known as Europe.

Which is why we were delighted that after months of modest confusion on the topic, the Congressional Committee on Financial Services (including subcommittee chairman Ron Paul), have demanded that not only Geithner make his stance on a US-funded IMF bailout of Europe crystal clear, but that they are openly opposed to "American taxpayer dollars being used to bail out Europe...through additional contributions to the IMF." We are curious to see just how Geithner will weasel his way out of responding to this: perhaps the only logical stall tactic is to reply that he will be busy helping Mitt Romney in his tax "revisions" over the next several months.

Incidentally, the House Committee on Financial Services may want to also ask the Fed Chairman how he reconciles his "no European bailout" statement with the chart below:

The press release issued by the "Republican Leaders." We are confused why Democrat Leaders are also not interest in the SecTres' response on the question of whether and how much US citizens will be bailing out the Italians and French with.

Washington, Jan 25 - Republican leaders of the House Financial Services Committee are seeking assurances from the Obama Administration that U.S. taxpayers will not bear the burden of bailing out debt-ridden European governments.

 

In a letter sent Wednesday to Treasury Secretary Timothy Geithner, Chairman Spencer Bachus, Vice Chairman Jeb Hensarling and the chairmen of the Committee’s six subcommittees ask for confirmation that the Administration will not use taxpayer funds to subsidize Europe’s financial programs through additional contributions to the International Monetary Fund (IMF). 

 

The IMF has requested up to $500 billion to respond to the Eurozone debt crisis.  The U.S. is the IMF’s largest member country. 

 

“The European Union includes four of the ten wealthiest countries in the
world.  European countries have the ability to implement austerity measures to reduce their countries’ debt over the long term and they also have the means to restore confidence to markets,” Chairman Bachus and the other Committee Republicans said.

 

In addition to Chairman Bachus and Vice Chairman Hensarling, the letter was signed by:

 

Rep. Scott Garrett, Chairman of the Subcommittee on Capital Markets and Government Sponsored Enterprises

 

Rep. Ron Paul, Chairman of the Subcommittee on Domestic Monetary Policy and Technology

 

Rep. Shelley Moore Capito, Chairman of the Subcommittee on Financial Institutions and Consumer Credit

 

Rep. Judy Biggert, Chairman of the Subcommittee on Insurance, Housing and Community Opportunity

 

Rep. Gary Miller, Chairman of the Subcommittee on International Monetary Policy and Trade

 

Rep. Randy Neugebauer, Chairman of the Subcommittee on Oversight and Investigations

And the full letter to Geithner:

 

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Thu, 01/26/2012 - 18:59 | 2101111 nope-1004
nope-1004's picture

Geithner = Loser.  Another slimy, corrupt civil servant that takes more from the people than he gives back - the exact opposite of what someone in his position should be doing.  He was a failure as head of the NYFed and is a failure still today.

Maybe he can be the next JPM ceo?  Or is that going to be Corzine's?

 

Thu, 01/26/2012 - 19:01 | 2101122 whatsinaname
whatsinaname's picture

In more important news, Bwaney Fwank is getting hitched.

Thu, 01/26/2012 - 19:25 | 2101181 nmewn
nmewn's picture

To what?

Thu, 01/26/2012 - 19:41 | 2101224 Whoa Dammit
Whoa Dammit's picture

A human plow, or to be more PC, his long term significant other.

Thu, 01/26/2012 - 20:22 | 2101320 King_of_simpletons
King_of_simpletons's picture

Republicans = Democrats = Political theater to pass time.  Bankers rule. Both parties will do what the bankers want.

Thu, 01/26/2012 - 21:44 | 2101460 Everybodys All ...
Everybodys All American's picture

Not the same according to this article. Who btw is the equivalent of Ron Paul on the democratic side?

Thu, 01/26/2012 - 22:26 | 2101531 Ivanovich
Ivanovich's picture

That would be Ron Paul.

Fri, 01/27/2012 - 00:07 | 2101625 JW n FL
JW n FL's picture

 

 

well.. it looks like the polite blue blooded, blood suckers have voted Death for Greece.

That would be the presbyterian's NOT! the Jews that they bank roll.

http://www.youtube.com/watch?v=JDCUJnoQL8s&feature=uploademail

Portfolio: Eurozone Prepares To Eject Greece by Stratfor

Fri, 01/27/2012 - 01:30 | 2101692 TruthInSunshine
TruthInSunshine's picture

All I have to say is -

Is this like when The Bernank pledged to the House & Senate, on multiple occassions, that he would NOT monetize U.S. deficit spending, and then proceeded (and is still proceeding to this day) to monetize U.S. deficit spending?

If The Bernank continues to bail out Europe (through currency swap arrangements, the IMF or World Bank, or any other direct or indirect, stealth route), there ought to be a law against this asinine bullshit.

Wait...wait...I do believe there are several laws precluding this asinine bullshit, prohibiting The Non-Federal Reserve-less Non-Bank from facilitating a 'bail out' of the EU, European Nations or or any foreign sovereign [never mind for the moment that The Fed is the most toxic repository of bad assets that history has ever been witness to, and that it's literally an illusion of a solvent entity projected onto a rationality-bending hologram) already in place, so it's a moot issue and we must be imagining that The Bernank's currency swap scheme (and who knows what else he's up to at present or planning for the future) is taking place, as it can't be taking place, right?

If The Bernank were to facilitate the bail out of the EU or any foreign sovereign it would bring about serious criminal ramifications for The Bernank, his cohorts and co-conspirators at The The Non-Federal Reserve-less Non-Bankand any other governmental agency, quasi-governmental agency or non-governmental agency, especially since it would have to be done with the direct or semi-direct use of U.S. taxpayer monies.

That could never be. Breaking such significant rules of law, fundamental to The The Non-Federal Reserve-less Non-Bank limited authority and narrow mission plan, empowered by a single act of congress, subject to being repealed at any given time, would lead to sweeping criminal prosecutions of the members participating in such activities, and if that did not happen, certainly foment revolutionary fervor by the masses, as soon as they became aware of such dubious, sinister plotting, right?

Right?

If SOME Republicans (or maybe even Democrats), want to fire themselves from the same paymasters that fund 'both' political parties in the U.S., now would be the most opportune time to declare their independence loudly, and come clean with the American People on what The Fed & The Bernank are up to these days, and they may just have much deserved rewards and glory heaped upon them (assuming they survive to tell the truth).

Where's Congress?

Where's anyone in a position of power, legislatively, or otherwise, to stand up and call Bernanke onto the carpet right now and demand a detailed explanation of all of his actions, to ensure that he's complying with, and not violating, basic rule of law vis-a-vis clear, unambiguous U.S. statutory authority?

Where? When? Who?

Fri, 01/27/2012 - 03:26 | 2101867 jeff montanye
jeff montanye's picture

it's not just "money to help bail out europe".  it's what the money is used for.  it is still, to a considerable degree, to make up for losses that broke bank bondholders should rightfully bear.  it makes zombie banks like japan's that prevent organic recovery.  the banks cannot be too big to fail.  they must be reorganized in bankruptcy.

oh, and as for who is ron paul for the democrats?  kucinich and sanders?  none of the three seem to be getting close to the real levers of power.  this may change if the sheeple begin to change.  ron paul '12.

also a decent critique of clinton/obama from the left  http://www.truthdig.com/report/item/obamas_faux_populism_sounds_like_bil...

Fri, 01/27/2012 - 08:40 | 2102028 pan-the-ist
pan-the-ist's picture

No, Bernie Sanders.  But he doesn't pretend to be a democrat, and RP shouldn't pretend to be a Republican.

Thu, 01/26/2012 - 22:44 | 2101551 dwdollar
dwdollar's picture

Ron Paul is on nobody's side, because nobody is on his side... except for the people and they don't count.

Fri, 01/27/2012 - 00:39 | 2101702 xela2200
xela2200's picture

If they counted, they wouldn't be allowed to vote.

Fri, 01/27/2012 - 01:22 | 2101747 dwdollar
dwdollar's picture

Haha... So true... I will add...

The people are allowed a vote OR a fair count, but not a vote AND a fair count.

Fri, 01/27/2012 - 08:58 | 2102050 Mitzibitzi
Mitzibitzi's picture

Same in every 'democracy'. When setting up such a 'democracy', there is considerable flexibility in how you may as 'a people' organize it;

You can have the universal right to vote, the right to a fair vote (count) and the right to choose between a selection of candidates who aren't all assholes. But you only get to pick two of the three.

Pick option A and you get 'the government will support my right to slob on the couch with other peoples' money!'

Column B leads to a society with so many rules and regulations required to enforce honesty on a population which comprises at least 10% lazy, greedy, corrupt pricks, that it rapidly turns into a police / nanny state.

And C might get you a decent leader, but only if it suits the interests of whichever group is allowed to vote at all / counts the 'universal' votes.

Over time, a 'democracy' may abandon one of these options in favour of another, but never (to my knowledge at least) has any populus trying such a system ever managed to maintain all three. The USA in it's early years doesn't count; it was a constitutional republic in more than name. You only ran into trouble when that shifted more radically towards a democratic system, as far as I can see. Shortly after the formation of Standard Oil, though that may be pure coincidence...

Fri, 01/27/2012 - 01:38 | 2101773 Joseph Jones
Joseph Jones's picture

Closest I can think of is Congressman Dennis Kucinich (OH)...independent version Senator Bernie Sanders (VT).  I'd ban both parties for all national office (not state level though).

IMO Ron Paul is not long for the Rep. Party anyway...he'll run for President as independent, and hopefully win.    

Thu, 01/26/2012 - 21:47 | 2101464 WonderDawg
WonderDawg's picture

You're mostly preaching to the choir here, but keep spreading that message. I don't think most Americans realize exactly how corrupt the system has become. When people put the blame on Republicans or Democrats, it means they don't get it. This is what the status quo wants to maintain. It's obvious that they're terrified of a critical mass of people seeing through the lies, so they'll do anything they can to prevent it. Keep shining the light.

Thu, 01/26/2012 - 22:03 | 2101490 -1Delta
-1Delta's picture

traders still have an edge- ish

http://evilspeculator.com/?p=26715#disqus_thread

Thu, 01/26/2012 - 23:16 | 2101587 billybobtx
billybobtx's picture

SAME SHYTE DIFFERENT SMELLY PILE.

Fri, 01/27/2012 - 04:32 | 2101894 Esculent 69
Esculent 69's picture

What don't people understand that there is no party's anymore.  It's Rome all over and I think I smell something burning. 

Fri, 01/27/2012 - 04:54 | 2101903 akak
akak's picture

Actually, the famous burning of Rome happened at the height of its power and glory.

What I smell today is a horde of unwashed, angry Visigoths outside the city gates --- and they want gold!

Thu, 01/26/2012 - 20:36 | 2101343 knukles
knukles's picture

As in dog knot?

Thu, 01/26/2012 - 19:29 | 2101193 disabledvet
disabledvet's picture

Who's the lucky guy?

Thu, 01/26/2012 - 20:00 | 2101247 akak
akak's picture

Or the unlucky gerbil?

 

http://www.youtube.com/watch?v=XQ8_nAeeXaE

Thu, 01/26/2012 - 19:32 | 2101204 tom a taxpayer
tom a taxpayer's picture

I'm getting married in the mornin'!
Ding dong! The bells are gonna chime.
Pull out the stopper!
Let's have a whopper!
But get me to the church on time!

http://www.youtube.com/watch?v=EGzAPP_7uEY

Thu, 01/26/2012 - 20:08 | 2101288 johnu1978
Thu, 01/26/2012 - 21:25 | 2101430 zeroGtoilet
zeroGtoilet's picture

It will be interesting to see if he shows more commitment to his marriage than Newt does to the dalliances he refers to as marriage.

Thu, 01/26/2012 - 21:51 | 2101470 WonderDawg
WonderDawg's picture

Who gives a fuck? We can only hope they both get what they deserve. I'm counting on karma taking care of those corrupt lying solipsistic cock sucking pieces of shit.

Thu, 01/26/2012 - 23:13 | 2101579 leftcoastfool
leftcoastfool's picture

couldn't have said it better myself...

Fri, 01/27/2012 - 01:05 | 2101731 WonderDawg
WonderDawg's picture

Oh, and I almost forgot, hypocritical motherfuckers.

Thu, 01/26/2012 - 23:38 | 2101624 Ms. Erable
Ms. Erable's picture

Sounds like Bawney is getting what Newt deserves.

Thu, 01/26/2012 - 19:01 | 2101125 AbelCatalyst
AbelCatalyst's picture

 

 

Long live Math!!  

It is an absolute impossibility to manipulate, spin, print, or destroy Math!!  Deep beneath the outward economy Math is doing it's work - an unrelenting, dispassionate force of reality.  Math works slowly at first, building pressure, but there will reach a moment in time when a tipping point will be reached and Math with have His day!!  

Long Live Math!!! 

Thu, 01/26/2012 - 20:29 | 2101328 mtomato2
mtomato2's picture

The simplest sermons are the best.

I think you have just won the award for the best comment in the history of Zero Hedge.

Thu, 01/26/2012 - 22:04 | 2101495 -1Delta
-1Delta's picture

well if u like math then go to evilspeculator.com - full of math

http://evilspeculator.com/?p=26715#disqus_thread

 

Thu, 01/26/2012 - 22:16 | 2101516 Backspin
Backspin's picture

Exponential functions, baby.  Learn what is meant by the term "knee of the curve".

Fri, 01/27/2012 - 01:52 | 2101796 TruthInSunshine
TruthInSunshine's picture

Arithmetic is The Bernank's kryptonite, bitchez.

[Arithmetic is all of fractional reserve banking/alchemy's kryptonite]

Fri, 01/27/2012 - 05:53 | 2101922 StychoKiller
StychoKiller's picture

Please to keep "knees" away from my 'nads -- thanx in advance! :>D

Thu, 01/26/2012 - 19:47 | 2101235 midtowng
midtowng's picture

It's all for show. The Republicans will fold because their masters on Wall Street want them to.

Thu, 01/26/2012 - 20:14 | 2101301 Manthong
Manthong's picture

As importantly, this little concern by the supposed holders of the purse strings is treated as just a minor nuisance by those actually running things. 

Thu, 01/26/2012 - 20:48 | 2101372 The Alarmist
The Alarmist's picture

No CEO role for Timmay, but he will be a Managing Director or Vice Chairman paid something on the oder of $10m or so per annum.

That is the way the door revolves.

 

Thu, 01/26/2012 - 22:45 | 2101547 tom a taxpayer
tom a taxpayer's picture

Or Little Timmy could end up as Attendant in the Executive Bathroom at Goldman Sachs. Does not pay much but he would get an occasional tip. Most of all it would fulfill a lifelong career goal for Timmy: to work at Goldman Sachs...that is, officially, on the books.

Fri, 01/27/2012 - 00:34 | 2101676 TruthInSunshine
TruthInSunshine's picture

Message above

Thu, 01/26/2012 - 19:22 | 2101112 kill switch
Thu, 01/26/2012 - 18:58 | 2101118 Irish66
Irish66's picture

Come on, this should of went to Bernake

Thu, 01/26/2012 - 19:00 | 2101120 cossack55
cossack55's picture

But....but.....if the US does not bail the Euros out again, why,  they may turn into socialists. 

Thu, 01/26/2012 - 19:27 | 2101190 Sean7k
Sean7k's picture

Bankrupt socialists. Fixed it. :)

Thu, 01/26/2012 - 20:06 | 2101282 AbruptlyKawaii
AbruptlyKawaii's picture

vs bankrupt capitalists

Thu, 01/26/2012 - 21:07 | 2101403 knukles
knukles's picture

America the land of the free and the home of the brave can pay for all of Europe.

Alls we gotta do is sell Bawney's salted gerbil bars

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