Ron Paul Dear Colleague Questioning Cost of IMF
Ron Paul Dear Colleague Questioning Cost of IMF and Letter of Questions for Larry Summers
(J. Bradley Jansen was Ron Paul’s legislative staffer for these issues at this time)
IMF COSTS US MONEY:
WHY WON’T TREASURY
TELL US HOW MUCH?
Dear Colleague,
The U.S. Treasury has failed. They have failed to report the true cost of U.S. participation in the International Monetary Fund (IMF) to Congress. The Treasury provided such data before Congress considered a quota increase in 1983 and again in 1991. Yet Treasury has failed to provide such data to the Congressional Research Service (CRS) or to Congress despite formal requests. Despite supporters’ claims to the contrary, the funding is not a “neutral” exchange of monetary assets for the taxpayer nor the country.
We take money out of the paychecks of the working people of this country and give them nothing in return–they cannot pay for child care or education with the IMF’s SDRs or go to the IMF for a loan to pay off their credit cards, tuition loans, car loans or mortgages. This is not a fair deal for average Americans, much less the working poor right here in this country.
It is not a “neutral” exchange for our country either. When we get past the gimmickry and budgetary shell games, we know that our membership with in IMF has in fact contributed to our national debt. It is not neutral. It costs us. Treasury won’t tell us how much.
According to the CRS, cumulative outstanding U.S. national net debt attributable to transactions with the IMF increased total U.S. government debt outstanding at the end of calendar year 1990. Due to the approval of a quota increase in November 1991, the net debt outstanding attributable to the IMF will have increased, according to CRS. Treasury refuses to release updated data for CRS to complete its study.
What are they trying to hide?
We need to stop the budgetary shell games used to deceive the American people.
We must oppose this political sleight of hand and demand real data from Treasury.
To cosign the letter requesting updated, real data from Treasury, call Bradley at X5-2831.
Sincerely,
Ron Paul
Larry Summers,
Deputy Secretary of the Treasury
Dear Mr Summers,
In many public statements and in testimony before various committee hearings, you have made the claim that U.S. contributions to the International Monetary Fund (IMF) are a “neutral” exchange of monetary assets. Yet, you simultaneously claim, we make money. According to the Congressional Research Service (CRS), cumulative outstanding U.S. national net debt attributable to transactions with the IMF contibuted to U.S. government debt outstanding at the end of calendar year 1990. Due to the approval of a quota increase in November 1991, the net debt outstanding attributable to the IMF will have increased, according to CRS. How do you reconcile these claims with the objective numbers presented?
At the time of the 1983 and 1992 IMF quota increases, the U.S. Department of Treasury presented to the U.S. Congress data on the financial gains and losses associated with U.S. participation in the IMF. These data are not prepared on a routine basis, but were compiled on an ad hoc basis in connection with the last two quota increases. These data should be prepared on a routine basis, and, at a minimum, should be prepared before Congress can knowledgeably consider additional funding for the IMF. They included data on the net Treasury debt or cash position arising from transactions under quota and from U.S. loans to the IMF; estimated cumulative borrowing costs associated with the net debt or cash position; valuation gains and losses; and interest paid and remuneration received. I am requesting that you provide an update of these data and related information. For guidance in what is being sought, reference is made to the material, both discussion and data, presented in past hearings, specifically:
* U.S. Congress. Senate. Committee on Appropriations. International Monetary Fund Quota Increase. Special Hearing, May 17-18, 1983, 98th Congress, 1st session, p. 49- 53. U.S. Govt. Print. Off. [Washington] 1983. Senate Hearing 98-402, and
* U.S. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on International Development, Finance, Trade and Monetary Policy. Quota Increase of the International Monetary Fund, Hearing held July 10, 1991.
102nd, 1st session, p. 65-68. U.S. Govt. Print. Off. [Washington] 1991. Serial 102-53.
Your response should be as consistent as is feasible with the 1991 presentation. Specifically, data should be presented in terms of IMF fiscal years, as it was at the time of the 1991 hearings. In addition to annual average debt outstanding, the end-of-period debt position should also be provided. In light of the upcoming legislative agenda, a prompt response would be appreciated.
Sincerely,