Sunday, September 25, 2011
Headline from Telegraph UK: IMF may need billions in extra funding -- "The head of the IMF has warned that its $384bn (£248bn) war chest designed as an emergency bail-out fund is inadequate to deliver the scale of the support required by troubled states."
Why should Americans care?
Well, since the US basically created and runs the IMF, and possess a super majority vote of 17.4% (all important decisions require 85% vote and other nations of world combined add up to 83.6% of the vote), that means 17.4% of all IMF funds come from the US i.e. the US Taxpayer.
So let's say the IMF says it needs another $500 Billion dollars to lend to nations that do not have the means to repay it, 17.4% equals..
Yes-- $87 billion US taxpayer dollars.
So when you hear or read about the IMF bailing out Greece, Ireland, Portugal or some other nation, and then that nation needing More & More money, and you think 'eh, who cares', understand you & I are bailing them out, not just some abstract entity.
Posted by Susquehanna at Sunday, September 25, 2011