Act 87, Scene 1 in the European Financial Crisis Farce continues today, according to Franklin Sanders of The-MoneyChanger.com, with the big announcement that the IMF (International Monetary Fund) is seeking another $300M in bailing out Europe. Unfortunately, the IMF has been an open spigot for a long time.
Of course the markets love this stall technique without really doing anything concrete to change the inevitable downward spiral, and will react positively. Before you jump and shout with glee however, remember-
American taxpayers, are the biggest contributors to the IMF of all countries.
According to a Wall Street Journal piece on the Greek bailout, the U.S. price tag for the Greece package in 2010 was $39 billion. We pay roughly in proportion to our stake in the IMF, as do other countries.
The U.S. quota is 17.09%, followed by Japan at 6.12%, Germany at 5.98% and France and Britain at 4.94% each. But the U.S. and other more developed countries with more of what they call useable resources (as opposed to say Zimbabwe dollars or Venezuelan pesos), in reality finance a larger percentage of IMF funding than their quota would suggest.