Added: 14. April 2010
As we reported a few days ago, the IMF massively expanded its last resort bailout facility (NAB) by half a trillion dollars, in which the US was given the lead role in bailing out every country that has recourse to IMF funding.
Yesterday, Ron Paul grilled Bernanke precisely on the nature of the expansion of the US role to the NAB:
“The IMF has announced that they are going to open up the NAB which coincides with the crisis in Greece and Europe and how they are going to bailed out.
The irony of this promise is that in the new arrangement Greece is going to put in $2.5 billion in. I think only a fiat monetary system worldwide can come up and have Greece help bail out Greece and be prepared to bail out even other countries.
But we are going from $10 to $105 billion… We are committing $105 billion to bailing out the various countries of the world, this does two thing I want to get your comments on one why does it coincide with Greece, what are they anticipating, why do they need $560 billion, do we have a lot more trouble, and when it comes to that time when we have to make this commitment, who pays for this, where does it come from?
Will this all come out of the printing press once again, as we are expected to bail out the world? Are you in favor of this increase in the IMF funding and our additional commitment to $105 billion?”
Bernanke, of course, washes his hands of any imminent dollar devaluation – it is all someone else’s responsibility to bail out life, the universe and everything else.
Bernanke pushes on “I think in general having the IMF available to try to avoid crises is a good idea.”
Yet Paul pushes on “Where will this money come from? We are bankrupt too.”
Indeed we are, but nobody cares – that is simply some other poor shumck’s problem.
Submitted by Tyler Durden on 04/15/2010 10:23 -0500
Source: ZeroHedge