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G-20 To ‘Give’ $1T To IMF And World Bank

From a thrilled and relieved New York Times:

 

[AFP photo and caption:] A file photo of a Russian woman begging in Moscow. World leaders are looking to raise up to 1.0 trillion dollars (748 million euros) in new financing for the International Monetary Fund and the World Bank, diplomats said Thursday.

G-20 Pact Has New Rules and $1.1 Trillion in Loan Pledges

By MARK LANDLER and DAVID E. SANGER

April 3, 2009

LONDON — Attempting to bridge deep divides in policy and financial philosophy, the leaders of nearly two dozen of the world’s largest economies agreed Thursday to a broad array of new fiscal and regulatory steps, in a desperate effort to revive the paralyzed global economy.

At the conclusion of the first economic summit meeting to rivet world attention in decades, Prime Minister Gordon Brown of Britain announced that the leaders had committed to $1.1 trillion in additional loans and guarantees to finance trade and bail out troubled countries

Among the steps Mr. Brown detailed are strict new regulations on hedge funds and rating agencies, as well as a crackdown on tax havens, which will be publicly named and subject to sanctions if they do not agree to share tax information with the authorities of other countries.

The Group of 20 also agreed on new global rules to cap the pay and bonuses of bankers, as well as a common approach to dealing with the toxic assets on the balance sheets of the world’s banks…

The Group of 20 pledged to triple the resources of the Fund to $750 billion — through a mix of $500 billion in loans from countries, and a one-time issuance of $250 billion in Special Drawing Rights, the synthetic currency of the Fund, which will be parceled out to all its 185 members.

The countries, in turn, could lend that money to troubled neighbors. The I.M.F.’s members also agreed to lend the proceeds from sales of the fund’s gold reserves to the poorest countries.

A financial stability board with enhanced authorities will also be created to provide an early warning mechanism to alert nations of systemic risks to the international economy, the communiqué said…

While the United States was determined to resist European efforts to create regulatory authorities with crossborder authority, officials said the two sides worked out policies on transparency and early risk warnings for banks that would placate France and Germany.

“There’s not going to be a ceding of sovereignty to a global regulator,” said a White House official, who spoke on condition of anonymity because the negotiations were confidential…

This has been Mr. Obama’s dream since he was a child.

To have the US give money to the world’s poor.

And this is only the beginning.

“There’s not going to be a ceding of sovereignty to a global regulator,” said a White House official…

Now we can all rest easy.

By the way, note the photo that the AFP decided to run with their version of this story.

Yes, by all means we must send (more) money to those poor Russians, too.

And you know they will be forever grateful.

This article was posted by Steve on Thursday, April 2nd, 2009. Comments are currently closed.

11 Responses to “G-20 To ‘Give’ $1T To IMF And World Bank”

  1. BannedbytheTaliban says:

    Do you suppose we will borrow money from China to cover our obligations to this boondoggle?

  2. Howard Roark says:

    Of course, we HAVE been sending massive amounts of money to the world through: foreign aid, UN support, debt forgiveness, and charitable giving for many decades. We have been the world’s biggest donors, but you wouldn’t know it to read this article.

    Barry wants to posture and preen as if America is finally showing some grace and mercy. I hate this a**hole.

  3. pdsand says:

    You know it occurs to me, why do these liberals care that the economy is paralyzed, and there isn’t any growth? Doesn’t that mean the rich aren’t getting richer? Doesn’t this crisis mean that the greedy capalists are finally getting what they have coming to them? Shouldn’t the world be celebrating the fact that the U.S. economy is supposedly in the great depression?

  4. MinnesotaRush says:

    It’s becoming very clear that we may have to take steps (worldwide) to make sure these gov’t. ninkumpoops have absolutely NO ACCESS whatsoever to our money. Let ’em throw around (and squander) their own money for a while.

    Self serving, ungrateful, and pompous asses ….

  5. proreason says:

    Well it looks like there is at least one bull market that just cranked up……….African dictators will be living mighty fine for the next few years.

  6. catie says:

    Scary

  7. reefdiver says:

    If the producers in this country went on strike, left, or refused to pay taxes, would the U.S. get payments from IMF, et al? Of course not, they would tell us to eat cake (or something else).

  8. TwilightZoned says:

    “…officials said the two sides worked out policies on transparency…”

    Yep, there’s that word transparency again. What exactly are in the agreed upon policies? If O used this word these people are in for a rude awakening. Or maybe they are wise to his definition and we are in for a rude awakening.

  9. bitterclinger says:

    …The Group of 20 also agreed on new global rules to cap the pay and bonuses of bankers…

    Global rules huh? I can’t figure out exactly how a global rule is supposed to work in the US legal system. All those state and federal constitutions we have might make them a little inconvenient.

  10. canary says:

    I really like Obama’s statement the other day “now everyone can buy a new car”.
    Anyone who could buy a car before he bailed the out, allready could. I wonder how many people ran to car dealers and told them, Obama said everyone can buy a new car now. I want a car.

  11. Liberals Demise says:

    This is where the value of the once mighty U.S. $ Dollar has gone:

    (sitting on the toilet at the local Wal-Mart)
    LD: Hey buddy, there isn’t any toilet paper here. Is there some in the next stall?
    buddy: Nope, none here!
    LD: Are there any paper towels?
    buddy: Nope, none here!
    LD: Have you got two 5’s for a 10?


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