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May 22, 2009
Obama Wants U.S. to Loan $100 BILLION to Global Bailout
Obama Wants U.S. to Loan $100 Billion to Global Bailout Fund
Obama has asked Congress to authorize $100 billion in loans to the International Monetary Fund (IMF) to help create a $500 billion global bailout fund.
If passed by both the Senate and the House, the bill would allow the IMF to borrow up to $100 billion from the U.S. and increase the U.S. fiscal contribution to the IMF by $8 billion.
The Congressional Budget Office estimates that the loans would not cost the U.S. more than $5 billion.
“It’s a new appropriation,” Rob Blumenthal of the Senate Committee on Appropriations, the committee that drafted the bill, told CNSNews.com.
“No money is required upfront. We’re not writing a check for 108 billion. So in the long term, if loans go into default, then what the CBO (Congressional Budget Office) is saying is that it might cost us up to $5 billion, but there’s no immediate outplay of funds.”
But the move is questioned by some lawmakers who are skeptical about lending money when the nation’s debt continues to climb – and who are concerned about the fact that the U.S. will have to borrow the money at some point to pay the $100 billion.
“Forcing taxpayers to borrow another $100 billion from China to bailout foreign countries makes no sense when we’re already facing record debt,” Wesley Denton, spokesman for Sen. Jim DeMint (R-S.C.), said.
Contributions from the U.S. and other countries would triple the IMF’s lending power and double its lending resources for low-income countries.
World leaders began on the global bailout initiative, called the New Arrangement for Borrowing (NAB), at the G-20 summit in early April. The president agreed at that time to make the additional funds available.
Last week, he sent letters to House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell and House Minority Leader John Boehner to seek their support.
“The NAB is a mechanism through which the IMF can obtain supplemental financial resources for use in its lending operations when the IMF’s existing resources are substantially drawn down in the face of circumstances that threaten the stability of the international monetary system,” Obama wrote.
“Treasury Secretary Geithner concluded that the size of the NAB is woefully inadequate to deal with the type of severe economic and financial crisis we are experiencing, and I agree with him,” the letter said.The Treasury Department released another letter to Pelosi and Reid Monday to express support for the plan. Japan has already signed a $100 billion pledge and the European Union, Norway, Canada, Switzerland, South Korea and Australia have also pledged billions of dollars for the global bailout. The IMF is a coalition of 185 countries that assesses the global financial situation and fosters stability and trade. Although its programs have been criticized in recent years, managing director Dominique Strauss-Kahn said he is optimistic about the member-states’ cooperation in this new borrowing arrangement.
“This is the most coordinated stimulus ever,” Strauss-Kahn said at the G-20 summit in April.
“We have already finalized with the Japanese a $100 billion loan. The Europeans have committed another $100 billion. And we have other partners to complete the first rung of $250 billion, and then will come the second rung to create this NAB proposed by (U.S. Treasury Secretary) Tim Geithner, which altogether will increase the resources by $500 billion.
“$500 billion plus the $250 billion we already have makes – how do you say that? – a fire,” Strauss-Kahn, former French finance minister, said.
Wild Thing's comment.........
Obama is a TAX WHORE!
Hell will freeze over before Obama does anything that is NOT against our country. Barack Obama pledged $100 billion in foreign aid to help bail out the ailing International Monetary Fund in April. Only after he announced it did he go to Congress and make his case for the money.
Obama wants....Obama needs...Obama wants...Obama needs....narcissistic Kenyan bastard. RAPING every current and future citizen of this country. Why not just shoot ‘em in the head once you have FINISHED, Marxist!
It is for the good of the neighborhood.....Que Mr. Rogers!!
Posted by Wild Thing at May 22, 2009 05:49 AM
Comments
No upfront cost, no downpayment... why does this sound like a BAD used Car ad. Is there a lemon law to go along with this POS bill.
HOw can the United States be bailing out Banks, Automakers, delinquent Home buyers, Blue States and now expect to bail out the World.
I am beyond the point of asking where does hussein expect the money to come from...The people in America who still have job. By the time this moron is done our paychecks will be in RED instead of black.
Posted by: Mark at May 22, 2009 09:01 AM
Obama reminds me of a child in a toy store with his parents. He wants them to buy all the toys as he believes his parents have a never ending supply of money.
Obama will continue to spend like this because that's how he was brought up. His private school and Ivy League education was achieved even though his grandparents were average middle income folks. Someone, somewhere footed his bills. He's never had to work his way though anything. He was a nobody state senator from Illinois who writes a book and gets millions. How do you figure that? Nobody knew of him but yet he got millions for the book.
Posted by: BobF at May 22, 2009 09:53 AM
What a bunch of doublespeak. It seems like they are already resigned to the loans going into default. But then it would "only cost us $5 Billion". What a steaming shovel full.
Posted by: TomR at May 22, 2009 11:57 AM
From what I hear, China has cancelled Americas credit card. HA HA O'Vomit.......screw you!
Posted by: cuchieddie (DHS suspected terrorist)) at May 22, 2009 01:21 PM
Do not think that we are not already on the schedule to be shot in the head.
Until he has completely looted the nation's wealth, he will keep the hope of survival alive for a few slaves to help with the looting. I remind you that his regulatory CZAR, Mr. Sunstien, associates with people who advocate reducing the American population by 90 %. They just will not say how.
Posted by: Avitar at May 22, 2009 05:15 PM
Mark,LOL good one.
"No upfront cost, no downpayment... why does this sound like a BAD used Car ad"
Monopoly money is more real then the money
Obama is spending.
Posted by: Wild Thing at May 23, 2009 12:04 AM
BobF., good comparison.
Those books he wrote really bug me. Very few
people write books about their lives that
have not done a lot or had some unusual
experience. Obama was a nobody, with no
experience and to write books about himself?
I have to wonder if even back then Soros did
not have a plan for Obama.
Posted by: Wild Thing at May 23, 2009 12:10 AM
Tom, yes Obama sure has managed
to do his dirty work very quickly.
Posted by: Wild Thing at May 23, 2009 12:14 AM
cuchieddie (DHS suspected terrorist)), yes
China has had enough. I heard too that
Obama asked the Saudi's for money and they
turned him down.
Posted by: Wild Thing at May 23, 2009 12:18 AM
Avitar, yes they really are trying to destroy
all of us, our country the whole thing.
Posted by: Wild Thing at May 23, 2009 12:23 AM
