Monday, May 10, 2010

Cathy McMorris-Rodgers on the Greece Bailout

Rep. McMorris-Rodgers (R-WA), one of the few politicians I positively like and admire, has written a stellar editorial on the price U.S. taxpayers are paying to help bailout socialist Greece.
Concerned that the fiscal damage could spread throughout the EU and the world, other European Union members and the IMF have pledged $145 billion to bail out Greece. And since the United States is the largest contributor to the IMF budget, our government will be funneling billions of American tax dollars to Greece.
And it's unlikely that Greece will be the last major EU member to seek financial help. High-debt Portugal, Spain and Italy could all face similar crises soon. Piero Ghezzi, an economist at Barclay's Capital, estimates that Spain may need a $450 billion bailout. Italy might well need more.

The United States pays 17 percent of total member contributions to the IMF; No. 2 Japan provides just 6 percent. That entitles us to a claim on the overall IMF balance sheet, not a share of any specific loan -- but it still means that our "share" of the $40 billion IMF package for Greece is equivalent to $6.8 billion.
If this isn't "from each according to his ability, to each according to his need" I can't imagine what would qualify. When it was popular, I thought the anti-drug commercials in which teens were exhorted to "Just Say No" was silly. Here, it definitely applies.


PC said...

That was yesterday, Jeff. The bill just got around seven times higher!

Jeff Perren said...

Oy! And by tomorrow it will probably be twice as high as that.