The following article from the Hill outlines an attempt by “conservatives” to prevent a bailout of the European Union by the IMF. The United States would be responsible for 17.71% of this bailout under old rules. The new rules by the IMF increase this fivefold now and tenfold in the future.
1. The European Union will collapse no matter how much money is put into this black hole. See Tom Coburn’s remarks below.
2. The “conservatives” need to understand that the Federal Reserve is the IMF and that they have no power over this EU bailout. If the people of the United States understood what is happening with our nation’s wealth, we would have already had our second revolution.
Conservatives say they will try to block the International Monetary Fund from bailing out Italy and Spain, which they say could leave U.S. taxpayers with a huge bill.
Republicans on both sides of the Capitol complain that the Obama administration has refused to share details of what Treasury Secretary Timothy Geithner is discussing with European leaders amid reports the IMF could intervene.
Sen. Tom Coburn (R-Okla.) says he is planning legislation directing the U.S. government to veto an expanded role for the fund.
Senate Republican Steering Committee Chairman Jim DeMint (R-S.C.) and Rep. Cathy McMorris Rodgers (Wash.), a member of the House Republican leadership, also have legislation to curb the proposed intervention.
“I’m adamantly against the IMF being involved in this,” Coburn said.
“We’re throwing good money after bad down a hole that I think is not a solvable problem,” he said.
“Europe is going to default eventually, so why would you socialize their profligate spending,” he added.
Coburn estimates the U.S. could be liable for as much as $176 billion if the IMF shores up Italy and Spain and the European Union collapses.