“All indications coming out of the recent European summit are that the IMF will play a leading role in bailing out European financial institutions that bet poorly on sovereign debt through some $200 billion house of cards scheme. This would include regional European central banks would ‘lend’ money to the Fund only to be funneled back into European bond markets, all in violation of the Article VII of the IMF’s Articles of Agreement, and the Lisbon Treaty’s Article 123 prohibition on monetizing the debt.
“This means U.S. taxpayers, who have already poured at least $20 billion into propping up Portugal, Greece, and Ireland through the IMF, will again be on the hook when the European governments default on their debt. The 83 cosponsors of this legislation deserve the thanks of American taxpayers, who don’t want to have anything to do with bailing out the bad decisions of foreign banks and European socialist governments.
“HR 2313 should be passed immediately, so that whatever remains of the nation’s $100 billion credit line to the IMF is pulled back before it is wasted on a costly bailout that will not work. Now is the time for the House to draw a line in the sand.”Permalink here.