House Republicans have taken a strong stand against an effort by the Democrats to slip $108 billion for the International Monetary Fund into the war supplemental bill.
Democrats tucked the request for the $108bn into a $90bn war funding bill, which passed the Senate but now has to be reconciled with a House version that does not include it. As the money is in the form of a credit line, the budgetary impact has been calculated at just $5bn.
The final version of the bill will be voted on again in the House as soon as Friday, but Republicans have said they will vote against the whole bill unless the IMF money is stripped out.
…“Let’s be clear: a troop funding bill should fund our troops, period,” said Jim Boehner, Republican leader in the House. “I will oppose this legislation if it is loaded up with billions in spending that is unrelated to our military’s core mission of protecting our nation and our interests.”
Faced with the prospect of either losing funding for the troops or bailing out foreign financiers, Nancy Pelosi announced that she is siding with the bankers.
Despite the uncertainties that Congressional Republican leaders have on the efficacy of the reform of the International Monetary Fund, House Speaker Nancy Pelosi is adamant that “The IMF will have strong support from the Democrats.”
Pelosi defended the international organization today at her weekly press conference where she also mentioned the success of her recent bipartisan trip to China.
…The debate over funding of the IMF has stemmed from President Barack Obama’s announcement at the April Group of 20 meeting that $100 billion will be granted to the IMF as part of the U.S war-bill which should further the fight against the global economic crisis. Obama also said that the U.S would support the IMF as it sells 400 tons of gold…
This issue is a perfect example of where the interests of Democrats truly lie. They would rather blow over $100 billion of our hard-earned tax dollars on international bankers than provide funding for our troops. The fact that they put this measure into a war bill is treasonous.
The IMF is aiming to usurp the rights of individual countries to issue their own currency. Americans won’t even be allowed to purchase bonds created by the group.
The International Monetary Fund is putting final touches on its plans to issue its first bonds. Russia has already said it would buy $10 billion of the bonds, which would be priced in the IMF’s quasi-currency, “special drawing rights.” SDRs are a basket of currencies consisting of the euro, yen, pound sterling and U.S. dollar. As of Friday, 1 SDR equals $1.55.
China, Brazil and India also have said they are interested in buying IMF bonds, with China likely to purchase more than $20 billion of instrument. The IMF wants to issue bonds as a way to build up its lending war chest as the global economic nosedive continues.
But don’t start lining up at the IMF to buy some yourselves. Only the IMF’s 185 member nations and some central banks will be eligible to purchase them and trade them — among themselves…And don’t expect to see a physical bond certificate or coupons. The IMF isn’t designing a paper bond with some fancy lettering or a picture of, say, the IMF headquarters or John Maynard Keynes. All the transactions will be handled electronically.
This currency created by an elite international financial organization unanswerable to anyone other than themselves has been a longstanding goal of neoliberal interventionists such as Pelosi an Obama. Their ‘special drawing rights’ will be wielded as a tool of economic oppression across the globe. Before Russia even accepts the notes issued, the IMF is already influencing the country’s policies.
The International Monetary Fund on Monday called on Russia’s central bank to start stress testing domestic banks as loan delinquencies rise.
“The CBR does not have a full picture of the situation in the banking system, and plans for how to ensure that the banks are adequately capitalised still need to be formalised,” Poul Thomsen, deputy director of the IMF’s European department, warned at a press conference in Moscow.
His remarks followed the fund’s annual mission to Russia, a 10-day effort to gather information and provide recommendations to the government.