Archives for November 2011

Nov. 7, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued a statement on last week’s announcement that the G20 had agreed to expand the International Monetary fund by anywhere from $300 billion to $350 billion:

“As Europe continues to unravel and fails to get its own fiscal house into order, now the IMF, which the U.S. funds, is being called upon to give a massive bailout to European banks that bet poorly on sovereign debt. The G20 is said to have agreed to at least a $300 billion IMF expansion. But the IMF cannot be expanded by $300 billion without congressional approval since it would put another $53 billion of U.S. taxpayer dollars at risk.

“The U.S has already given at least $20 billion to bail out European banks through the IMF. Not another cent ought to go to bailing out foreign banks. This must come up for a vote in Congress, and when it does, the answer on behalf of U.S. taxpayers must be an emphatic no.”

Attachments:

“Democracy cancelled in the lands that founded it,” By Bill Wilson, ALG President, Nov. 7, 2011 athttp://netrightdaily.com/2011/11/democracy-cancelled-in-the-lands-that-founded-it/ .

“U.S. has already provided $20 billion to bail out Europe,” By Robert Romano, ALG Senior Editor, Nov. 3, 2011 athttp://netrightdaily.com/2011/11/u-s-has-already-provided-20-billion-to-bail-out-europe/ .

“The Future of the Eurozone and U.S. Interests,” Congressional Research Service, Sept. 2011 atwww.getliberty.org/files/R41411.pdf .

“The United States and Europe: Current Issues,” Congressional Research Service, June 2011 atwww.getliberty.org/files/167961.pdf .

Letter to Members of Congress Against European Bank Bailout, Americans for Limited Government President Bill Wilson, Oct. 26, 2011 at www.getliberty.org/files/EuropeanBailoutLetter 10-26-11.pdf .

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Nov. 4, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today responded to the slight drop in the unemployment rate:

“The small drop in the unemployment rate is a testimony to the vibrancy of the free market capitalist economy that Obama and his political allies who embrace the Occupy Wall Street movement seek to kill. At least for the last couple of months, our nation’s job creators have overcome the never-ending regulatory attacks by this Administration.

“Let’s not forget that in spite of all the happy talk, 13.9 million Americans who want a job still cannot find one and even the Bureau of Labor Statistics states, “both the number of unemployed persons (13.9 million) and the unemployment rate (9.0 percent) changed little over the last month. The unemployment rate has remained in a narrow range from 9.0 to 9.2 percent since April.

“On top of this admission that this Administration’s economic policies have led to a stagnation consigning almost 14 million of our fellow citizens to life without a job, it would be short-sighted to ignore this week’s Federal Reserve downgrade of our nation’s 2012 economic and job growth prospects. When combined with the rising unemployment rate in Europe and predictions that they are heading back into recession, it is very difficult for this Administration to take a victory lap over these moribund results.

“In fact, one of the ironies of this jobs report is that it affirms that the private sector can and will create jobs in a month that saw two more companies join Solyndra in failing spectacularly after receiving millions of U.S. taxpayer dollars. These failures highlight the foolishness of this administration continuing to try to choose economic winners and losers based upon ideology and political favoritism. If Obama would suspend all of his new regulations to be reviewed by the next Administration, the economy would take off putting people back to work.”

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Nov. 3, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today in a statement urged the U.S. Congress to cancel all bailouts to European banks whether through the IMF or the Federal Reserve:

“To date, U.S. taxpayers have already given $20 billion to bail out European banksthrough IMF refinance loans to socialist governments like Greece that cannot afford to pay them back. This is absolutely outrageous. The U.S. is already the world’s largest debtor and by the end of the year the national debt will be larger than the entire economy, and yet taxpayer resources are being dedicated to financing the unsustainable national debts of other profligate governments.

“Not one cent of American resources, whether through the IMF or the Federal Reserve or any other institution, should be put to propping up foolish foreign banks that bet poorly on sovereign debt.”

Attachments:

“U.S. has already provided $20 billion to bail out Europe,” By Robert Romano, ALG Senior Editor, Nov. 3, 2011 athttp://blog.getliberty.org/default.asp?Display=3812 .

“The Future of the Eurozone and U.S. Interests,” Congressional Research Service, Sept. 2011 atwww.getliberty.org/files/R41411.pdf .

“The United States and Europe: Current Issues,” Congressional Research Service, June 2011 atwww.getliberty.org/files/167961.pdf .

Letter to Members of Congress Against European Bank Bailout, Americans for Limited Government President Bill Wilson, Oct. 26, 2011 at www.getliberty.org/files/EuropeanBailoutLetter 10-26-11.pdf .

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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Nov. 2, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today urged members of Congress to resist any U.S. role in providing financial assistance to Europe to alleviate the sovereign debt crisis.

“The fact is, we are already bailing out Europe,” Wilson warned, citing a recent Congressional Research Service (CRS) report published in September.

The report states, “After extended negotiations, European leaders and the International Monetary Fund (IMF) agreed in May 2010 to provide funding for a €110 billion (about $158 billion) loan facility for Greece and a broader stabilization fund for other euro area countries should they require loans. Both loan packages were backstopped by various forms of assistance from the U.S. Federal Reserve Board (FRB) and the IMF.”

The broader stabilization fund totals €440 billion, called the European Financial Stability Facility (EFSF). “It’s not up to the American people to bail out European banks that bet poorly on the sovereign debt of socialist governments that could not afford to be paid back,” Wilson said.

The U.S. provides 17.72 percent of the IMF’s finances. To date, the IMF has dispensed €78.5 billion to Greece, Portugal, and Ireland, or the Sept. equivalent of $112 billion, according to the report. “The U.S. taxpayers’ tab is already almost $20 billion so far that the IMF has put at risk,” Wilson noted.

Wilson’s call comes as House Speaker John Boehner and U.S. Treasury Secretary Timothy Geithner met to discuss Europe on Capitol Hill. Geithner reportedly briefed Boehner “on the European debt crisis and the potential impact on America,” according to the Speaker’s spokesman.

The CRS report found U.S. financial institutions to be on the hook for as much as $641 billion more in exposure to Portugal, Ireland, Italy, Greece, and Spain (PIIGS).

“The bailout of European banks is already taking place under the noses of members of Congress and is putting U.S. taxpayer resources at risk, whether through the IMF or the Federal Reserve,” Wilson said.

“It’s not enough just to stop the IMF. It’s got to be comprehensive,” Wilson warned. He recently sent a letter urging members of Congress to adopt legislation that would prohibit a U.S. bailout of European banks, whether through the International Monetary Fund, the Federal Reserve, or any other institution.

“Key EU leaders like Germany are unwilling to heap the bad debts of Portugal, Italy, Ireland, Greece, and Spain (PIIGS) on the backs of their own taxpayers via the European Central Bank (ECB), and so wish to pass the buck along to the IMF, of which the U.S. funds a significant portion,” Wilson’s letter explained.

In Europe, member states are voting to leverage the €440 billion European Financial Stability Fund (EFSF) to at least €1.4 trillion, with the IMF being considered as the primary vehicle for the leverage, Wilson warned.

“If the bailout financing comes from the IMF, U.S. taxpayers could be on the hook for more than 17 percent of the bailout: at least €170 billion, or $235 billion,” he wrote.

Wilson emphasized that the plan would make the U.S. responsible for Europe’s debts when it is already the world’s largest debtor with a debt of over $14.9 trillion.

Wilson concluded, “The sad truth is American taxpayers, by financing the IMF, are underwriting the destruction of representative government in Europe that their fathers and grandfathers fought and sacrificed their lives to defend.”

Attachments:

“The Future of the Eurozone and U.S. Interests,” Congressional Research Service, Sept. 2011 atwww.getliberty.org/files/R41411.pdf .

“The United States and Europe: Current Issues,” Congressional Research Service, June 2011 atwww.getliberty.org/files/167961.pdf .

Letter to Members of Congress Against European Bank Bailout, Americans for Limited Government President Bill Wilson, Oct. 26, 2011 at www.getliberty.org/files/EuropeanBailoutLetter 10-26-11.pdf

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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