“President’s Blank Check Creates a Moral Hazard that
Makes a Global Debt Crisis More Likely”
After $161 Billion Bailout Last Year,
Talks Continues on a Second Bailout
Spokane, WA – Rep. Cathy McMorris Rodgers (R-WA), Vice Chair of the House Republican Conference, released the following statement today after President Obama concluded a meeting with German Chancellor Angela Merkel by pledging to “cooperate fully… through international financial institutions like the IMF” in the $161 billion bailout of Greece – a bailout which may be repeated in the next few days, bringing the total cost of the Greek bailout to $227 billion.
“The President’s statement was a missed opportunity to protect the American people who don’t want their tax money being money used to bail out European governments. The President’s support of these bailouts has already cost US taxpayers $100 billion. By strongly endorsing these bailouts again yesterday, the President continues to create a moral hazard that makes it more likely that larger European nations – particularly, Spain and Italy – will be standing in line for American tax dollars tomorrow.”
Rep. McMorris Rodgers is the author of a Congressional resolution that would stop U.S. tax dollars from being used by the IMF for bailouts of European countries. In his statement yesterday, President Obama said failure to participate in these bailouts would be “disastrous.”
On March 24, 2010, Rep. McMorris Rodgers was the first Member of Congress to publicly oppose U.S. involvement in a European bailout.
A full compilation of her work on this issue can be found here.