There is a GREAT CNN article I had to make more people aware of- here is the link to the full story:
Here is my take on WHY this is such a great article:
The IMF (int'l Monetary Fund) is looking to raise another $500 billion from its members.
The US is the single biggest member- so they are looking to us to put up about 20-25% (member ratio).
Sec. Geithner is actually holding firm and saying NO- which alone is news.
Smaller countries are chipping in, but China has yet to make its decision- See my WORLD BANK article.
European countries have all written IOUs.... enough said, I don't kick people when they are down.
The point about raising this money is to backstop Europe, and its primary larger country issues of Italy and Spain.
Sec Geithner has basically said - "We have loaded you dollars to keep you liquid and that IS our part." And given our fiscal situation, it isn't like we can write a blank check for $150-200 Billion and not worry about it.
The Taxpayer (people like you and me) would FLIP out if that happened. Which is WHY you need to know and why I am proud of CNN for covering this. IT is the only attention I have seen so far, which is key- as these things happened over time and no one else is talking.
Keep your ears and eyes open- this is huge as well, China is looking to become a bigger member of IMF (control money flows to developing nations)- but basically doesn't support developing nations now, looks to itself and its pro-growth policies primarily.
China needs to pony- up HUGE to get in the game- period. They have the 2nd largest economy and the fastest growing of the big economies- yet they only worry about themselves. THAT can't continue and that is what our politicians should be beating them with. Not in a bad way, but in a diplomatic way, in a trade talk way, in a way that holds them accountable for their behavior (or in this case, lack of behavior or decision).
We need to worry more about ourself, hold ourself accountable, and build our country back up while we can. SO this is not the time for us to loan out the money that we do not have, to nations who have yet to make tough decisions, while at the same time our Reserve Currency is being used to back stop the liquidity of their banks.
Good decision, Sec. Geithner! Hold that line for all of us.