The International Monetary Fund is living large at U.S. taxpayers’ expense
The Daily Caller
February 15, 2011
By Matt Kibbe
Matt Kibbe is the President and CEO of FreedomWorks.
Last year, the International Monetary Fund’s (IMF) bailout of Ireland and Greece put U.S. taxpayers on the hook for over $46 billion. It’s time to get ready for the next round of European bailouts in 2011. IMF First Deputy Managing Director John Lipsky says that “we will stand by with our European partners to provide support.” Speculation has been circulating that this will mean an upcoming taxpayer bailout of Portugal and Spain.
According to the Washington Post, “Portugal remained the most immediate concern, with analysts sounding alarms over its failure to meet targets to reduce government spending. But given Portugal’s tiny economy, the more important issue continued to be conditions in Spain — the fourth-largest economy among the 16 nations that share the euro as their currency.
“Though Spain’s fiscal situation is far better than that of Portugal, Ireland or Greece, analysts fear its banks might be harboring hidden bad debts from a real estate crash similar to the ones in Ireland and the United States.”
A couple weeks ago, the IMF sent a special unit to meet with the Bank of Spain to discuss a proposed rescue package. In order to survive, the IMF must provide credit. These potential bailouts will line the pockets of the IMF at the expense of taxpayers. The UK-based Guardian writes that “fresh from imposing tough conditions on Ireland as the price of its bailout, the International Monetary Fund’s bureaucrats plan to concentrate on a matter closer to home in the new year — sprucing up their offices in downtown Washington, DC.”
Just eight years ago, the IMF spent $150 million on a second building complete with a stunning external waterfall. They claimed that the original headquarters was simply too small for their staff, who receive bloated salaries. Peter Chowla, program manager at the IMF watchdog Bretton Woods Project, states, “after a nice financial crisis, the IMF’s balance sheet is looking very healthy — lots of interest to pour in from Greece and Ireland and commitment fees on money never even lent to Colombia, Mexico and Poland. So the fund is thinking about spending some of the proceeds on remodeling its headquarters.”
Taxpayer bailouts of Spain and Portugal will make things worse. By holding out the prospect of a bailout to any country or big bank that fails, the IMF has only encouraged reckless behavior. Unfortunately, IMF officials have an incentive to expand the roles and functions of the international bureaucracy. Most IMF staff members are paid six-figure salaries with generous perks including housing and education for family members. These IMF officials jet-set around the world giving mostly bad economic advice to nations.
IMF officials who receive tax-free salaries are notorious for wrongly advising nations to raise taxes. In a recent report, the IMF urged the United States to enact their plan, which would increase taxes by up to 60 percent. IMF bureaucrats have recently told Eastern European states to repeal their successful flat taxes. In many of these countries, the real problem is overspending and taking on too much debt. According to the IMF’s European Department Senior Adviser Anne-Marie Gulde, “The idea of moving away from the flat tax to a progressive tax is very much one of the measures that we’re looking at. It could help to increase revenues while putting more of the burden on higher-income groups.”
We must pressure Treasury Secretary Tim Geithner to veto these irresponsible taxpayer bailouts. American taxpayers should not be forced to reward countries with poor economic policies and banks that make risky loans. These bailouts encourage reckless behavior and allow IMF bureaucrats to live large at our expense.
Robert Orr needs a Chinese Visa to enter UN's DC2 building
Rio+20: GreenPeace Statement
Greenpeace International Executive Director has released a statement on his views of Rio+20. "The future we want has gotten a little further away today. Rio+20 has turned into an epic failure, It has failed on equity, failed on ecology and failed on economy" were Kumi Naidoo frank comments after the text for the outcome document was adopted. Please click here for the full statement.
UN Policy Coordination on the Road
DESA's Telecommuting Assistant Secretary General
Sha Zukang's behavior not appropriate...
Sha's behavior was not appropriate as a senior advisor. And he also knows that his behavior has embarrassed most of the [other] senior advisors at that time.
Mr. Chance (buy this book now)
Click on the picture and purchase this book now. It's already a best seller. It shows the coward Ban Ki Moon and his Korean team in action.
Chinese Social Affairs Department
"UN needs complete leadership overhaul"
International Development Secretary Andrew Mitchell, who asked Ashdown to carry out the report, said the government would give its response in about six weeks.
Czech President Klaus
"...this is the time for international organizations, including the United Nations, to reduce their expenditures, make their administrations thinner, and leave the solutions to the governments of member states"
Sha Zukang Disrespectful of UN Rules
UN staff rules require employees to uphold and respect the principles set out in the Charter, including faith in fundamental human rights. They prohibit U.N. employees from accepting instructions from any government or from any other source external to the organization. UN staff should avoid any action and, in particular, any kind of public pronouncement that may adversely reflect on their status, or on the integrity, independence and impartiality that are required by that status.
Barack Obama on UN Reform
Obtain Refund of Funds Owed to the U.S. by the U.N.
CLICK ON VOTE - to save approximate $180 million in one time savings
Get ready U.N. !!
Let's raise our voices
The following months are critical. Changing DESA is in your hand. Speak up now and share our message with all colleagues.
NyTimes disavows Ban Ki Moon
"The United States, meanwhile, should think hard about whether it wants to support Mr. Ban’s re-election" NyTimes Editorial - Nov 03, 2010
Feel like saying smth ?
You are free to respond to any of our critics. Send an email at - firstname.lastname@example.org - your reply will be published as is
UN at 65
State Department Spokesperson P.J. Crowley
"Sha Zukang seems to be cranky at lots of folks. It will not affect our relations with China."
UN STAFF RESOLUTION ON BAN KI MOON
If SG Ban Ki-moon fails to take immediate steps towards real reform to address these urgent systemic issues, Staff Union will consider a vote of NO-CONFIDENCE
Backstabbing for Beginners
Backstabbing for Beginners is at once the darkly comic tale of one man's political coming of age and a stinging indictment of the hypocrisy that prevailed at the heart of the world's most idealistic institution.
Hacked Emails Show Blatant Climate Change Fraud
anyone who wants to report facts in our Blog is welcomed. You can send us anonymous messages thru leaving comments into our past blogging or you can send us an email at: email@example.com. We ensure full confidentiality of your reporting.
What will this successful Chinese Diplomat do different?