Yes you read it right, Filipino taxpayers will be joining Emerging Market contemporaries in transferring resources to European bankers and European politicians, through the IMF, to supposedly “erect a firewall” from an escalating Euro debt crisis.
From Bloomberg,
Emerging-market nations including China and Brazil formalized funding pledges to the International Monetary Fund, helping to almost double its lending power to protect the world economy from Europe’s debt turmoil.
With the addition of new pledges from 12 nations that also includes Russia, India and South Africa, the Washington-based lender said it now has received funding commitments of $456 billion, up from the roughly $430 billion it said it had secured in April. The temporary contributions will add to the $380 billion the IMF currently has available for lending.
“Countries large and small have rallied to our call for action,” IMF Managing Director Christine Lagarde said in a statement on the sidelines of a Group of 20 summit, adding that the new contributions would only be used as “second line of defense” after existing resources are depleted.
G-20 leaders are gathering in the Mexican beach resort of Los Cabos for a two-day summit dominated by the financial crisis in the 17-country euro region just as Spanish borrowing costs soar to a euro-era record. Canada and the U.S. abstained from pitching in for the IMF, despite calls by German Chancellor Angela Merkel for the rest of the world to do more.
“It’s going to be the first time the fund is capitalized without the U.S., which reflects the importance of emerging markets,” Mexican President Felipe Calderon said on June 16.
Pledge Amounts
The meeting’s host said Mexico would contribute $10 billion to the fund, matching pledge amounts made here by Russia, India and Brazil. China said it will provide $43 billion, while South Africa, Colombia, Malaysia, New Zealand and the Philippines were among nations offering smaller amounts.
Where do you think the Philippine government will get the funding to help in the bailout of the European elites? From domestic taxpayers, of course. This includes me.
So the poor (developing nations) will be rescuing the rich (particularly the politicians and the bankers of developed nations). Pope Benedict XVI, are you paying attention?
Emerging market politicians want to swagger about the growing significance of their economies in order to have a greater role in the IMF. But this, by throwing away scarce resources that could be used for local contingencies (e.g. disasters)?
Politicians have been fixated with the present at the expense of the future. What happens if and when another future crisis arrives, especially if such will be a domestic or a regional phenomenon?
This also exhibits that personal status symbols are more the priority for politicians than what they preach as serving the ‘general welfare’.
Also this demonstrates how political agents can thoughtlessly and brazenly fritter away other people’s money.
The European crisis has been transformed into a giant vortex that continues to suck or drain away productive resources out of the global economy.
Since the crisis will likely continue for the simple reason that EU's politicians do not want to deal with its roots, particularly the parasitical relationship of their political economies, and instead look for more hosts to prey upon, then the likelihood is that every nation will get dragged into the financial and economic black hole.
Have a nice day.
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