Rep. Cathy McMorris Rodgers. R-Wash., and Sen. Jim DeMint, R-S.C., introduced legislation Thursday that would stop the Obama administration’s costly bailouts of Greece and other European nations.
Since the bailout money is being dispensed through the International Monetary Fund (IMF), the bill would rescind the IMF’s authority to spend up to $108 billion of U.S. taxpayer money, which was made available to fund the bailouts.
“At a time when the federal government is borrowing $5 billion every day on top of a $14 trillion national debt, I am gravely concerned by America’s growing involvement in the ‘gathering storm’ of European bailouts,” said McMorris Rodgers, vice chair of the House Republican Conference. “The European debt crisis was caused by too much spending and borrowing and that crisis will not be solved by more spending and borrowing.
“A ‘Euro-TARP’ is the wrong approach because it's creating a ‘moral hazard’ that will lead to larger counties — particularly Spain and Italy — standing in line for U.S. tax dollars tomorrow,” she said. “America should have no part in it.”
DeMint said the administration should concentrate on the home front.
“We haven’t even begun to seriously address our own economic difficulties, so it makes no sense to continue bailing out failing European countries,” said DeMint. “If we don’t reverse our reckless fiscal course, America will be the one in need of a bailout. We need to stop the spending, stop the debt, and pass a balanced budget amendment.”
“American taxpayers have seen more bailouts than they can stomach, and the last thing they should have to worry about are their hard-earned tax dollars being used to rescue a foreign government,” said Sen. John Cornyn, R-Texas, who introduced the Senate bill with DeMint.
In 2009, the Democratic Congress approved the Obama administration’s request to increase U.S. funding to the IMF by $108 billion. Republicans opposed the measure. The bill rescinds that authorization, returns any unobligated money to the U.S. General Fund, and specifies that the money be used for deficit reduction.
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