Update: 10/25/14: Harry Reid has dropped demands for the IMF funds to be included in the Ukraine aid package.
Does President Obama seek to make us irrelevant on the world stage while allowing dictators to rob us of our resources?
President Obama and the dictators in the UN want to scale back US influence while increasing required donations by the US to their monetary fund under the guise of it being a “reform package”. Obama has cleverly decided to tie this “reform package” to Ukrainian aid because Congress has not passed it on its own questionable “merits.”
While Putin is threatening to empower the International Monetary Fund (IMF) in the UN whether the US agrees or not, Obama is seeking to use the Ukrainian crisis as a vehicle to double our monetary contributions to the IMF as a requirement of providing aid to Ukraine.
The plan – the “reform package” – in the UN is to expand the power, resources and reach of the IMF while greatly reducing US power and influence. Congress has been resisting.
It would mean doubling our contributions to the IMF while shifting power to communists and socialists in Russia, China, and the so-called five BRICs – Brazil, Russia, India, and South Africa.
China’s influence would be greatly expanded and right now they want a central bank in charge of a global currency. Imagine what that will do to the US dollar. We are signing our own death warrant.
A White House “fact sheet” titled “International Support for Ukraine” states: “We are working with Congress to approve the 2010 IMF quota legislation, which would support the IMF’s capacity to lend additional resources to Ukraine, while also helping to preserve continued U.S. leadership within this important institution.”
The IMF has, as Speaker Boehner said, NOTHING to do with Ukraine.
The package will double the amount the IMF is allowed to loan any country with basically no limit. It would mean a 100% increase in US taxpayer contributions of $63 billion, representing the largest increase in IMF history. And just so you know, without the US, the IMF and the UN cease to exist. We have leverage. We don’t have to cave.
The IMF can support Ukraine for two years without this increase. They don’t need the money. The American Enterprise Institute has said that the loans needed for Ukraine “represent no more than 5 percent of the IMF’s currently available resources.”
The IMF is unreliable and has wasted money on extending and guaranteeing loans to countries with unsustainable debts. They did so recently with Greece. They no longer require countries or creditors to restructure or write down debt to sustainable levels before receiving new loans.
The Senate Finance Committee has passed the bill with the IMF funding but it’s not certain the Senate proper will pass it. The House stands opposed.
This “reform package” will increase the voting power of the communists and socialists, not only in Russia, China and in the BRIC countries, but also in other so-called emerging nations using our tax dollars.
Currently, the US has the largest quota of any country in the world and the largest single-nation voting share at 16.5%. Since major decisions require an 85% supermajority approval vote, the US is the only country in the world with veto power at the IMF. This is what the dictators in the UN want abolished and this is what President Obama wants to do as well.
The US also has the right to appoint a permanent representative to the Executive Board of the IMF where all the power lies. We also provide 20% of the funds to the IMF and we must keep this power.
The IMF has been an important stabilizer in world financial crises and it must not be in the control of dictatorial regimes. Obama’s intense pressure to reform the IMF now is completely unnecessary so I ask, why now?
Russia is doing what Obama is doing to our US Congress. He is saying he will push the “reform package” through without the US Congress. He’s using his pen and phone. Instead of threatening to withdraw US resources, Obama is caving and attempting to bully Congress into passing the reforms.
The NY Times and others insist the US pass the reforms as it is in our interests. They claim that the IMF needs the money though that is not the case. In fact, a Times report last week admits some of the money will end up in Russian institutions!
”The Russians are major holders of Ukrainian debt,” the senior American official acknowledged. “So in any scenario in which Ukraine is getting financial assistance, some of the money very likely is going to end up in the hands of Russian institutions. I think there is probably no way of avoiding that.”
The UN wants global taxes, their Agenda 21 seeks to plunder and confiscate US wealth and resources. They want to turn the IMF into a global bank to which we would be subjugated. China wants a fiat currency forcing the world to give up the US dollar as the reserve currency. What could possibly go wrong with lessening our influence? I ask again, does President Obama want to make us irrelevant on the world stage?
Strengthening the IMF while weakening our hold over it, is a US foreign policy made for the dictators of the world.
Update: Lindsey Graham was caught on hot mic telling Kerry he’d try to help him push this incredibly bad deal with Speaker Boehner:
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