From World Policy Blog
''The IMF and its managing director Christine Lagarde are pleased with themselves for assembling country commitments for $430 billion in additional emergency-ish financing to bail out Europe. Lagarde calls her agency’s resources “firepower” to complement what the financial press likes to call the “firewall”: Moneys deployed in defense of the Euro, through mechanisms—one supposedly temporary, the other a permanent fiscal adjustment mechanism—created by European politicians.
One woman’s firewall is another’s slush fund, which is why U.S. Representative Cathy McMorris Rodgers not only continues to warn against what she calls a “Euro-TARP” but also wants to rescind a standing $100 million commitment from the U.S. to the IMF. (That’s not likely to happen, but the U.S. has declined to contribute to the latest $430 billion IMF plus-up.)''
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