Ron Paul Dear Colleague Saying IMF Costs Us Money
Ron Paul Dear Colleague Saying IMF Costs Us Money
February 1998
(J. Bradley Jansen was Ron Paul’s legislative staffer for these issues at this time)
IMF COSTS US MONEY:
Dear Colleague,
In order to have an honest debate about additional funding for the International Monetary Fund or even our continued membership, objective figures for the costs and benefits must be provided. The Treasury provided such data before Congress considered a quota increase in 1983 and again in 1991. Yet Larry Summers refuses to provide such data to the Congressional Research Service or to Congress despite formal requests. Despite claims that the funding is a “neutral” exchange of monetary assets, this exchange is not neutral for the taxpayer or 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 who cannot go to the IMF for a loan to pay off their loans from credit cards, tuition, cars 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 the IMF has in fact contributed to our national debt. It is not neutral. It costs us.
In written questions submitted to deputy secretary of the Treasury Lawrence Summers at the Banking Committee hearing last November, he was asked, “According to the Congressional Research Service (CRS), cumulative outstanding U.S. national net debt attributable to transactions with the IMF totalled over $4.6 billion at the end of January 1991 and contributed nearly 0.2% of 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. Yet, in your testimony, you claim that the United States gains financially from our dealings with the IMF. How do you reconcile these claims with the objective numbers presented?”
Not only did he refuse to respond then, but he arrogantly dismissed the request in the following hearing in January and has still not even acknowledged our request for real data. 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 slight of hand and demand real data to evaluate the situation. To cosponsor the letter requesting updated, real data from Treasury, call Bradley at X5-2831.
Sincerely,
Ron Paul