Tag Archives: G20

Obama Pleads for $100 Billion Loan to IMF to Fund Wars

Democrats agree to IMF money in U.S. war bill

Democrats in the U.S. Congress have reached a deal to boost support to the International Monetary Fund, lawmakers’ aides said on Tuesday, a victory for President Barack Obama who pledged to help the lender assist countries in the global economic crisis.

The war funding measure will provide a $100 billion credit line to the IMF, increase the U.S. member contribution to the IMF by $8 billion and authorize the United States to back the IMF’s plan to sell 400 tons (12.97 million ounces) of gold, said the aides, who declined further identification.

Obama had pleaded with the House of Representatives and the Senate to approve the provisions and the full funding package is expected to be completed in the coming days.

The bill must be voted on in both chambers before being sent to Obama. The House approved a $96.7 billion measure for the wars in Iraq and Afghanistan without including the IMF provisions while the Senate approved a $91.3 billion version with them.

The final package is also expected to include funding for eight Boeing Co C-17 military transport planes that the House approved but the Senate cast aside, one source said.

Senate Appropriations Committee Chairman Daniel Inouye said that “so far” 11 Lockheed Martin C-130 transport planes approved by the House also were in the compromise package.

Other unresolved disputes include how much additional economic aid to provide Pakistan.

The House ignored Obama’s IMF request when it passed its version and Appropriations Committee Chairman David Obey, a senior Democrat, expressed reservations about including it until European countries did more to stimulate their economies.

Obama’s credibility has been on the line with world leaders because he pledged the support at a Group of 20 nations meeting in April. The G20 agreed to provide the IMF $500 billion more to help developing countries coping with the economic downturn.

“Even if the $500 billion isn’t completely used, it is part of the overall strategy from this administration about building confidence around the world,” said Nancy Birdsall, president of the Washington-based Center for Global Development.

Additionally, congressional authorization is needed for the U.S. representative to the IMF to vote on the gold sale.

Democrats could have some problems getting the final bill through the House because about 50 anti-war Democrats voted against it initially because they opposed the wars while senior House Republicans have expressed unease about including the IMF provisions in an emergency war funding bill.

“We should not be having this discussion. IMF funding has no business being included in the war supplemental” bill, said Representative Eric Cantor, a member of the Republican leadership.

It would take a defection of almost all Republicans and the anti-war Democrats for the bill to fail but because the measure funds U.S. troops in the field, it is unclear whether they are willing to vote down the measure.

To learn more about the IMF see: Funding the IMF for the ‘New World Order’

‘The Impoverishment of Many to Satisfy the Greed of a Few’

Amnesty International Report 2009

IT’S NOT JUST THE ECONOMY, IT’S A HUMAN RIGHTS CRISIS

In September 2008 I was in New York to attend the UN high-level meeting on the Millennium Development Goals (MDGs), the internationally agreed targets to reduce poverty by 2015. Delegate after delegate talked about the need for more funds to eradicate hunger, to cut preventable deaths of infants and pregnant women, to provide clean water and sanitation, to educate girls. The life and dignity of billions of people were at stake, but there was only limited will to back up the talk with money. As I left the UN building I could see the ticker tapes running a very different story coming from another part of Manhattan: the crash of one of the largest investment banks on Wall Street. It was a telling sign of where world attention and resources were really focused. Rich and powerful governments were suddenly able to find many more times the sums that could not be found to stem poverty. They poured them with abundance into failing banks and stimulus packages for economies that had been allowed to run amok for years and were now running aground.

By the end of 2008, it was clear that our two-tier world of deprivation and gluttony – the impoverishment of many to satisfy the greed of a few – was collapsing into a deep hole.

As with the case of climate change, so too with global economic recession: the rich are responsible for most of the damaging action, but it is the poor who suffer the worst consequences. While no one is being spared the sharp bite of the recession, the woes of the rich countries are nothing compared with the disasters unfolding in poorer ones. From migrant workers in China to miners in Katanga in the Democratic Republic of the Congo (DRC), people desperately trying to drag themselves out of poverty are feeling the brunt sharply. The World Bank has predicted 53 million more people will be thrown into poverty this year, on top of the 150 million hit by the food crisis last year, wiping out the gains of the last decade. International Labour Organization figures suggest that between 18 and 51 million people could lose their jobs. Skyrocketing food prices are leading to more hunger and disease, forced evictions and foreclosures to more homelessness and destitution.

“The world needs a different kind of leadership, a different kind of politics as well as economics – something that works for all and not just for a favoured few.”

While it is too early to predict the full impact on human rights of the profligacy of recent years, it is clear that the human rights costs and consequences of the economic crisis will cast long shadows. It is also clear that not only have governments abdicated economic and financial regulation to market forces, they have failed abysmally to protect human rights, lives and livelihoods.

Billions of people are suffering from insecurity, injustice and indignity. This is a human rights crisis. Full Story

World Bank President Warns of Social Crisis

Rising unemployment raises threat of social crisis: World Bank

World economic recovery will be slow and rising unemployment could bring the threat of social crisis and protectionism, World Bank President Robert Zoellick said in an interview with Spanish Sunday newspaper El Pais.

“What began as a great financial crisis and became a great economic crisis is now becoming a great crisis of unemployment, and if we don’t take measures there is a risk of a great human and social crisis, with major political implications,” he said.

“That’s a good breeding ground for populist, protectionist policies,” he added.

“The finance ministers of the G7 and the G20 are displaying a certain relief because the contraction has slowed. Although we could still have low or negative growth, the situation is less bad,” he said.

“But economists and industrialists are conscious that the recovery will be slow coming and weaker than expected.”

Dangers remain in the U.S. financial system and in vulnerable emerging markets, Zoellick said.

“Maybe the key thing that has to be cleaned up is the financial system. The USA has taken steps in the right direction, but there are still banks with serious difficulties related to consumer finance, credit cards and real estate.

“On top of that, the United States depends more than Europe on the mortgage securitization market, and that market has yet to recover,” he said.

He said there were risks in Africa, parts of Latin America and in Eastern Europe.

“China could surprise on the upside, it has obtained good results from its stimulus plan. For countries like Mexico and Brazil, the main threat is losing access to finance,” Zoellick said.

IMF’s Big, Bold Role in a Worsening Economic Crisis

Economic crisis getting worse: IMF

A Bigger, Bolder Role Is Imagined For the IMF

Inside a cavernous assembly hall in downtown Washington, dignitaries gather twice a year for routine meetings of the International Monetary Fund. Before long, though, the room could take center stage in the IMF’s transformation into a veritable United Nations for the global economy.

Surrounded by blond wood paneling and a digital screen the size of a cinema’s, central bankers and finance ministers would meet to convene a financial security council of sorts. Serving almost as ambassadors to the IMF, they would debate ways to put out the world’s economic fires and stifle reckless policies before they ignite new ones.

Bowing to a new economic world order, the IMF would grant fresh powers to the likes of China, India and Brazil. It would have vastly expanded authority to act as a global banker to governments rich and poor. And with more flexibility to effectively print its own money, it would have the ability to inject liquidity into global markets in a way once limited to major central banks, including the U.S. Federal Reserve.

That image of a radically transformed IMF — whose role in the global economy had turned largely advisory in recent years — is now coming together through internal IMF documents, interviews and think-tank reports. Finance ministers from major nations will begin grappling with the formidable details of the IMF’s makeover this weekend when they converge in Washington for the fund’s biannual assembly.

The changes, broadly outlined by President Obama and other leaders of the Group of 20 nations in London earlier this month, could take months, even years to take shape. But the IMF is all but certain to take a central role in managing the world economy. As a result, Washington is poised to become the power center for global financial policy, much as the United Nations has long made New York the world center for diplomacy.

The IMF’s mission is expanding so broadly that its managing director, Dominique Strauss-Kahn, said in an interview that the organization — which underwent deep cuts last year before the financial crisis swept the globe — may boost staffing in coming months, potentially creating dozens of high-paying jobs in the District.

“The IMF is changing, and with it, there will be a sea change in the way the world economy is run,” said C. Fred Bergsten, director of the Peterson Institute for International Economics. “Their role will dramatically shift. You’re talking about monitoring fiscal stimulus, moving toward tighter regulations for financial institutions. You’re talking about global economic management in a way we have never seen.”

Already, the economic crisis is triggering a profound cultural shift, with the IMF moving away from its long-held mission to spread the gospel of capitalism around the globe.

Founded at the end of World War II to maintain stability in global currency markets, it later became known as the lender of last resort for nations in crisis, particularly as financial fires raced across Asia and Latin America in the 1990s. Its bailouts, however, were the bane of many poor countries; they often came with demands for fiscal austerity and free-market reform as the cures for developing nations — even if that meant nations had to cut back on programs for health care and schools. Full Story

Top Ten Reasons to Oppose the IMF

What is the IMF?

The International Monetary Fund and the World Bank were created in 1944 at a conference in Bretton Woods, New Hampshire, and are now based in Washington, DC. The IMF was originally designed to promote international economic cooperation and provide its member countries with short term loans so they could trade with other countries (achieve balance of payments). Since the debt crisis of the 1980’s, the IMF has assumed the role of bailing out countries during financial crises (caused in large part by currency speculation in the global casino economy) with emergency loan packages tied to certain conditions, often referred to as structural adjustment policies (SAPs). The IMF now acts like a global loan shark, exerting enormous leverage over the economies of more than 60 countries. These countries have to follow the IMF’s policies to get loans, international assistance, and even debt relief. Thus, the IMF decides how much debtor countries can spend on education, health care, and environmental protection. The IMF is one of the most powerful institutions on Earth — yet few know how it works.

1. The IMF has created an immoral system of modern day colonialism that SAPs the poor
2. The IMF serves wealthy countries and Wall Street
3. The IMF is imposing a fundamentally flawed development mode
4. The IMF is a secretive institution with no accountability
5. IMF policies promote corporate welfare
6. The IMF hurts workers
7. The IMF’s policies hurt women the most
8. IMF Policies hurt the environment
9. The IMF bails out rich bankers, creating a moral hazard and greater instability in the global economy
10. IMF bailouts deepen, rather then solve, economic crisis

Read the explanations for the Top Ten Reasons

Obama’s Proposal to Loan the IMF Billions of Dollars

Obama proposes $100 billion U.S. loan for IMF

President Barack Obama on Monday proposed a $100 billion U.S. loan to the International Monetary Fund to boost the IMF’s resources and urged a bigger stake in the IMF for emerging powers.

In a letter to U.S. congressional leaders, Obama said the U.S. funding “does not represent a budgetary expenditure or any increase in the deficit since it effectively represents an exchange of assets.”

The $100 billion is part of commitments made by Group of 20 countries at a London summit on April 2, which agreed to triple IMF resources to a total of $750 billion to help the IMF respond to crises in emerging market economies as a result of the global financial crisis and economic downturn.

The U.S. funding will boost the IMF’s so-called New Arrangements to Borrow, or NAB, a facility which allows member countries to provide credit to the IMF to deal with crises that may threaten the stability of the global financial system.

Obama said the NAB was “woefully inadequate” to deal with the severe economic and financial crisis.

“The deteriorating conditions threaten to worsen the recessions in these countries and could cause currencies to collapse,” Obama wrote.

“Together, these factors, particularly if they become more acute, will further lower global growth and, as we saw during the Asian financial crisis, they will cause U.S. growth, jobs, and exports to fall even more sharply,” he added. Full Story

Jim Rogers: “abolish the World Bank and IMF”

Related Stories:

Funding the IMF for the ‘New World Order’
G20 – A New World Order for Global Recovery
How the International Monetary Fund and the World Bank Undermine Democracy and Erode Human Rights: Five Case Studies

G20 – A New World Order for Global Recovery

Obama hails the new world order

Gordon Brown declared that a $1 trillion package to stimulate economic growth agreed at yesterday’s G20 summit in London will ensure that the world pulls out of recession more quickly.

Speaking after the one-day summit of the world’s richest nations in the Docklands, the Prime Minister said there were “no quick fixes”, adding: “Today’s decisions will not immediately solve the crisis. But we have begun the process by which it will be solved.”

He said: “This is the day that the world came together to fight back against the global recession, not with words, but with a plan for global recovery and for reform and with a clear timetable for its delivery.”

The US President Barack Obama played a key role in brokering the agreement, resolving tensions between China and France on tax havens. The $1trn will be made available to countries that run into trouble via the International Monetary Fund (IMF), the World Bank and World Trade Organisation, which will all be beefed up.

Half the money will come from IMF loans, with $250bn to finance trade deals and a further $250bn from the IMF’s currency reserve.
Full Story

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Please see Funding the IMF for the ‘New World Order’ for more information on how the megalomania’s IMF and the World Bank bring destruction in their ‘loaning’ of money.

Funding the IMF for the ‘New World Order’

G20 meeting, Gordon Brown’s New World Order

G-20 pumps $1 trillion into beating recession

British Prime Minister Gordon Brown heralded the emergence of a “new world order” Thursday as the G-20 issued details of an “unprecedented” package of measures to tackle the global economic crisis.

U.S. President Barack Obama called the deal “a turning point in our pursuit of global economic recovery.”

The deal agreed by the leaders of the world’s largest economies included reform of the international banking system and the injection of more than $1 trillion into the world financial system. Full Story

G-20 to give $1 trillion to IMF, World Bank

G-20 leaders hoping to end the global economic crisis pledged an additional $1.1 trillion in financing Thursday to the International Monetary Fund and other global institutions and declared a crackdown on tax havens and hedge funds.

In a communique capping a dramatic one-day gathering, the leaders announced the creation of a supervisory body to flag problems in the global financial system — but did not satisfy calls for new stimulus measures.

They did, however, bridge the gap between the United States and some European nations over how far to regulate the market and curb the excesses that sparked the global economic crisis.

“Today the largest countries of the world have agreed on a global plan for economic recovery and reform,” said the host, British Prime Minister Gordon Brown. His announcement was quickly followed by similar ones by the French and German leaders, who supported the results of the summit. Full Story

Fed, FCC Under Control of IMF

The World Bank (WB) & The International Monetary Fund (IMF)

Who is the IMF?

from: 50 Years is Enough

The misery, marginalization, and impoverishment forced on millions by the International Monetary Fund and World Bank is unacceptable and renders them illegitimate.

The IMF and World Bank are controlled by rich imperialist countries in corrupt complicity with national elites all over the world. They claim to lead the fight against poverty, but their role as global loan sharks; their cruel imposition of privatization, cuts to social services, and free trade policies; their funding for environmentally disastrous projects; their secrecy and undemocratic decision making processes, make them an enemy of the people worldwide.

Today, these two institutions are on the defensive. Venezuela, Bolivia, and Ecuador are in open revolt against the IMF and World Bank. South African shantytown dwellers are fighting water privatization; Korean workers are striking against “free trade” agreements; and thousands of people successfully blockaded the G8 meeting in Germany earlier this year.

In the U.S., in the heart of empire, millions are struggling against the oppressive system of capitalism for dignity, autonomy and solidarity. Tens of thousands gathered for the first ever United States Social Forum; millions of immigrants have marched for their rights; and in Washington DC,in the belly of the beast, residents are organizing against the policies of gentrification and displacement.

The Grassroots Guide to the IMF and the World Bank (sample from book)

See Also:

Analysis: Crisis may lead to new world order
Proposal of a New Reserve Currency Controlled by the IMF