Beware of Greeks Bearing Bailout Plans

Mar 24, 2010
Press

As the Greek Debt Crisis continues, President Obama needs to stand firm: American tax dollars should not be used to bail out Greece – or any country – that engages in reckless government spending and deficits.  And yet, a bailout paid for by U.S. taxpayers remains a real possibility.

This week, leaders of the European Union will be meeting to consider aid for Greece. But instead of using their own money to bail out Greece, it’s more likely the EU will adopt Germany’s proposal to use money from the International Monetary Fund. That way U.S. taxpayers – not just the European Union – will be on the hook for an international bailout.

U.S. tax dollars already pay for 17% of the IMF’s liquidity. And any bailout by the IMF would have to be approved by the U.S. government. According to the IMF’s rules, major decisions require an 85% supermajority. And the U.S. is the only country with the power to block a supermajority on its own.

Therefore, President Obama has the power to either approve or reject a bailout of Greece. So far, he has been quiet. But instead of waiting while storms gather, the President should be vocal that U.S. taxpayers will not bail out Greece. The European Union may be tempted to pass the buck to the U.S. by requesting IMF “help.” If the Presidents tells them ahead of time that such “help” will not be forthcoming, he will make it more likely that the E.U. will meet its responsibilities.

One note however: While Greece has been fiscally irresponsible, America hasn’t been much better. Greece’s national debt equals 113% of its GDP. By comparison, America’s national debt equals 64% of GDP, although it’s expected to grow to almost 100% in the next 10 years. Do we want to become like Greece? And if we do, who will bail out America? Let’s hope that’s a question we never know the answer to.

In the meantime, let’s be clear: If President Obama is considering bailing out Greece, American taxpayers need to send him a message. And our message is: “Just Say No.”

Original can be found here:

http://biggovernment.com/crodgers/2010/03/24/beware-of-greeks-bearing-bailout-plans/

Recent Posts


McMorris Rodgers Introduces Bill Expanding Service Opportunities for Disability Community

Washington, D.C. – Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) reintroduced the Hannah Cvancara Service Act (H.R. 7405) to empower individuals with a non-service-connected amputation to serve the United States Armed Forces as medical personnel. This legislation was inspired by Hannah Cvancara, a Spokane resident who suffered a childhood amputation that disqualified her from serving […]



McMorris Rodgers, Cantwell Applaud Approval of Disaster Declaration for Spokane County Following Devastating Wildfires

Washington, D.C. – Today, President Joe Biden declared that a major disaster exists in Spokane County and ordered federal assistance to supplement recovery efforts in the aftermath of the Gray Fire and the Oregon Road Fire in August 2023. After the announcement, Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) and U.S. Senator Maria Cantwell (D-WA) […]



Feb 15, 2024
Press

McMorris Rodgers Helps Pass Bipartisan Bill to Block President Biden’s LNG Export Ban, Unleash American Energy

Washington D.C. – Today, Eastern Washington Congresswoman Cathy McMorris Rodgers (WA-05) helped the House of Representatives pass the Unlocking Our Domestic LNG Potential Act (H.R. 7176) to reverse President Biden’s American liquified natural gas (LNG) export ban. She released the following statement after the vote: “The President’s decision to impose a ban on new permits […]