A few weeks ago, President Obama met with member countries of the G20 to discuss the state of the global economy. Following that meeting, Treasury Secretary Tim Geithner proposed a ten-fold expansion of an emergency international fund that loans money to bail out troubled countries like Sudan. The current program can issue a loan of up to $50 billion, but Geithner wants to expand that to $500 billion.
We would have to borrow another $100 billion from China to bail out these foreign countries, and this makes no sense when we are already facing record debt and millions of Americans continue to struggle with employment here at home.
The International Monetary Fund – the international entity in charge of loaning your tax money to other nations – provides loans to countries that are “troubled” or struggling to stay afloat financially. If the Obama administration’s plan passes, our tax money could be loaned to countries like Pakistan, Ukraine and Takijistan, as well as potentially other countries with questionable allegiances to the United States.
Worse, we have no clear indication that these struggling nations will ever be in a position to pay back these loans, creating even more unneeded strain on America’s fiscal stability.
American taxpayers already see a generous amount of their hard earned money being lent to foreign entities each year in the form of other foreign aid like that which goes to the United Nations. We shouldn’t be asked to put the rest of the world’s struggling economies on our backs while we face our own economic challenges here at home.
The Obama administration’s strategy to get this funding request passed into law is to attach it to the emergency war funding bill that will be debated in the U.S. Senate next week. I intend to work with other concerned senators to fight to strip this provision, which frankly has nothing to do with the continued funding of the mission of our brave men and women defending our freedom abroad.
Please let me know about any issues of importance to you and your family by contacting me at any of my state offices or in my Washington office by mail at U.S. Senator David Vitter, U.S. Senate, 516 Hart Senate Office Building, Washington, D.C. 20510, or by phone at 202.224.4623. You can also reach me on the web at http://vitter.senate.gov