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International Monetary Fund
Submitted by Robert Naiman on 14 May 2010 - 10:42am
Republicans in Congress are trying to block the U.S. Treasury Department from supporting U.S. tax funded International Monetary Fund contributions to the so-called "bailouts" in Europe, which, as economist Mark Weisbrot explains, aren't bailouts for working families at all - for working families, the IMF programs guarantee extreme hardship, and most Europeans would be much better off if these IMF packages collapse - but bailouts of European banks with bad loans.
The purpose of the IMF packages is to force European working families to pay off the banks' bad loans through economic austerity, rather than forcing the banks to take their losses on their bad bets, which would be capitalism, or at least the capitalism they lecture us about it in school and on the nation's op-ed pages when the politically weak are on the chopping block. As we know from the recent Latin American experience, if a country like Greece defaulted on the bad debt and got it over with, economic growth could resume. But the IMF is more of a collection agency for the big banks than an institution concerned with boosting economic growth and employment or reducing poverty.
Submitted by Robert Naiman on 4 June 2009 - 12:16pm
Last month, 60 Members of the House of Representatives, including 51 Democrats, voted against the war supplemental for Afghanistan, Pakistan, and Iraq. But this week, when the House is expected to consider the agreement of a House-Senate conference on the war funding, the supplemental could well be defeated on the floor of the House - if most of the 51 anti-war Democrats stick to their no vote - which they might, if they hear from their constituents.
The key thing that's changed is the Treasury Department's insistence that the war supplemental include a $100 billion bailout for the International Monetary Fund - a bailout for European banks facing big losses in Eastern Europe, the international version of the Wall Street bailout.
House Republicans, including Minority Leader John Boehner, have threatened to vote no on the war funding if the IMF money is attached. If Boehner could bring all the Republicans with him, and if all the Democrats who voted no last month voted no again, the war supplemental would fail on the floor of the House, 200-228.
But not every Democrat who voted no before will vote no now, and therein lies the drama. The House leadership didn't need those anti-war Democrats before, so in a way it was a "free vote" - 51 Democrats could vote on behalf of their anti-war constituents without running afoul of the leadership. But if Treasury insists on the IMF money, and Republicans vote no, the leadership will need 18 of those Democrats now.