October 26, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today in a letter urged members of Congress to adopt legislation that would prohibit a U.S. bailout of European banks, whether through the International Monetary Fund, the Federal Reserve, or any other institution.
"Key EU leaders like Germany are unwilling to heap the bad debts of Portugal, Italy, Ireland, Greece, and Spain (PIIGS) on the backs of their own taxpayers via the European Central Bank (ECB), and so wish to pass the buck along to the IMF, of which the U.S. funds a significant portion," Wilson's letter explained.
In Europe, member states are voting to leverage the €440 billion European Financial Stability Fund (EFSF) to at least €1.4 trillion, with the IMF being considered as the primary vehicle for the leverage, Wilson warned.
"If the bailout financing comes from the IMF, U.S. taxpayers could be on the hook for more than 17 percent of the bailout: at least €170 billion, or $235 billion," he wrote.
Wilson emphasized that the plan would make the U.S. responsible for Europe's debts when it is already the world's largest debtor with a debt of over $14.9 trillion.
Wilson concluded, "The sad truth is American taxpayers, by financing the IMF, are underwriting the destruction of representative government in Europe that their fathers and grandfathers fought and sacrificed their lives to defend."
Letter to Members of Congress Against European Bank Bailout, Americans for Limited Government President Bill Wilson, Oct. 26, 2011 at www.getliberty.org/files/EuropeanBailoutLetter 10-26-11.pdf