US Congress blocks IMF Aid to countries not too big to fail

[amir_j]

Europe may have to clean up its own mess after all. The US Senate has voted 94:0 to block use of taxpayers’ money for IMF rescues that make no economic sense or bail-outs for countries like Greece that far are beyond the point of no return.

...It instructs the US representative at the IMF to determine whether a country with a public debt above 100 per cent of GDP can be expected to repay IMF loans. If this cannot be certified, the US must oppose the rescue package.

...“This amendment will help prevent American taxpayer dollars from underwriting dysfunctional governments abroad,” said Texas Senator John Cornyn, the chief sponsor. “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. Greece is not by any stretch of the imagination too big to fail.”

Co-sponsor David Vitter from Louisiana said America had run out of money. “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.”

It is unclear where this leaves the EU’s $1 trillion “shock and uh” package. Urlich Leuchtmann from Commerzbank said the IMF share of $320bn was the only genuine money on the table, the rest being largely euro smoke and mirrors, or plain bluff.


http://blogs.telegraph.co.uk/finance/ambroseevans-...

[Groober]

Why'o'why do we not take the same stance.

[glazbagun]

I guess if it drags down the Euro, the USA will hardly be crying into it's beer either.

[bob1179]

Groober said:

Why'o'why do we not take the same stance.

Is Britain opting out of the 'aid package'? It would be nice if we could take the US stance.

[Spiritual_Beggar]

Not sure whether it still applies now Labour are gone....but didn't Darling come out and say we would not be supporting this.

One of the last comments he made wasn't it.


Could be wrong though.

[amir_j]

Spiritual_Beggar said:

Not sure whether it still applies now Labour are gone....but didn't Darling come out and say we would not be supporting this.

One of the last comments he made wasn't it.


Could be wrong though.

Think he said we would not bail out the euro currency as we are not part of it, but would bail out countries as part of the EU

[The real Apache]

Spiritual_Beggar said:

Not sure whether it still applies now Labour are gone....but didn't Darling come out and say we would not be supporting this.

One of the last comments he made wasn't it.


Could be wrong though.

Nope you're right, Darling said we would not support this, we're not part of the Eurozone anyway. Can imagine we'd be even more disliked if we didn't though

[10 Pence Short]

The real Apache said:

Spiritual_Beggar said:

Not sure whether it still applies now Labour are gone....but didn't Darling come out and say we would not be supporting this.

One of the last comments he made wasn't it.


Could be wrong though.

Nope you're right, Darling said we would not support this, we're not part of the Eurozone anyway. Can imagine we'd be even more disliked if we didn't though

We are funding it through the IMF, rather than directly through the Euro. Unsurprinsingly the only real money on the table is from the IMF whilst that 'offered' by the Euro members hasn't actually seen the light of day. The Euro countries are trying to get The World PLC to fund their bail out so they don't have to- which is why the US are not happy bunnies.

[Fittster]

Looking at US debt they can't afford to sort themselves out, let alone anyone else. You'd be better off talking to China, at least they have some cash in the first place.

[Fittster]

anonymous said:

[redacted]

All those bits of US paper probably aren't worth what the paid for them but they had better keep buying them or Congress will have more to worry about than bailing out Greece.

[Jimbeaux]

anonymous said:

[redacted]

That goes both ways for China as well.

[elster]

10 Pence Short said:

The real Apache said:

Spiritual_Beggar said:

Not sure whether it still applies now Labour are gone....but didn't Darling come out and say we would not be supporting this.

One of the last comments he made wasn't it.


Could be wrong though.

Nope you're right, Darling said we would not support this, we're not part of the Eurozone anyway. Can imagine we'd be even more disliked if we didn't though

We are funding it through the IMF, rather than directly through the Euro. Unsurprinsingly the only real money on the table is from the IMF whilst that 'offered' by the Euro members hasn't actually seen the light of day. The Euro countries are trying to get The World PLC to fund their bail out so they don't have to- which is why the US are not happy bunnies.

I thought we were giving them 6 Billion through the EU and 9 Billion through the IMF.

You know those cuts of 6 Billion mentioned in the elction speeches.

I have just found 15.