House Republicans Object To Proposed Bailout Of Greece

By Alexa Gitler
Talk Radio News Service

House Republicans on Wednesday criticized the Obama administration for supporting a financial bailout of debt-laden Greece, and touted legislation they've drawn up that would prevent U.S. dollars from being used to fund such a maneuver.

"The European Bailout Protection Act [was] designed to pull back from this administration’s head rush to take the bad ideas of the Wall Street bailout and take them global,” House Republican Conference Chairman Mike Pence (D-Ind.) argued.

According to the Pence, the bill does not permanently prohibit the International Monetary Fund (IMF) from lending to these nations; it simply prohibits the United States from participating in the proposed European bailout.

Other members present, including Reps. Jeb Hensarling (R-Texas), Todd Tiahrt (R-Kan.), and Tom McClintock (R-Calif.) shared Pence’s views, explaining that the bailout would merely be a temporary solution and that they hoped there could be bipartisan effort to reconsider the terms of the bailout before moving forward.

“There is an element of simply forestalling the pain for one generation and transferring even greater pain to the next generation,” Hensarling said. “All bets are off, all taxpayer commitments have to be re-examined.”

Added Tiahrt, “This is a good opportunity for America to wake-up and to become sober when it comes to spending.”

No Need for IMF, EU Financial Help Says Greek Foreign Minister

Greece's Alternate Foreign Minister has dismissed rumors that the IMF or the European Union would intervene to provide financial assistance to the country. Greece's economy is faltering and the budget deficit last year was 13 per cent of its GDP. "There is no thought at all about the IMF" Minister Dimitri Droutsas said, "and there is no need for financial assistance from the European Union"

Speaking Thursday in New York, Droutsas said his government had already announced major structural changes to deal with the crisis, including a new tax system to discourage tax evasion, raising the retirement age to 67 for public pensions and freezing wages for civil servants.

Droutsas also said the government would try to scale down the many bureaucratic levels of the Greek public sector, in which many unions are on strike or planning strikes to protest the changes. Droutsas said it was natural the new mesures would meet with some resistance because they affect so many people directly, but he expressed confidence the government will be able to work with other parties and has the support of the population and the European Union.

The Greek Alternate Foreign Minister also told reporters the current reunification talks in Cypress remain a priority issue for his government. On a recent trip to the divided Mediterranean island, Secretary General Ban Ki Moon called on both the Greek and Turkish Cypriot leaders to accelerate the negotiation process. Although the Secretary General said a solution was “within reach” during his visit, Droutas believes the present stage of discussion does not allow for overwhelming optimism, adding that the latest proposals by Turkish Cypriot leaders were outside the framework that had been earlier discussed.

Madeleine Albright advocates against domestic violence at the World Bank

Former Secretary of State Madeleine Albright addressed the World Bank to mark the beginning of Domestic Violence Awareness Month. The World Bank, the Inter-American Development Bank, and the International Monetary Fund are starting abuse prevention programs within their own organizations by providing training for managers to be able to deal with domestic abuse that may be occurring between employees and employers.

Albright spoke about the criminal act of domestic violence as a "violation of fundamental human rights", especially within one's own home. Due to many countries treatment of women as objects within a marriage left at home to care for the children, women have become "undervalued" and "underdeveloped resources", Albright said. The belief that every life counts, Albright concluded, is what will lead to a positive change against domestic violence.

IMF offers mixed outlook on global economy

The Brookings Institution held a discussion this afternoon regarding perspectives on the global economic landscape. The panel addressed concerns over the declining value of the dollar, rising inflation, the role of the International Monetary Fund (IMF) and what these factors mean for the future of the global economy.

According to John Lipsky, first deputy managing director of the IMF said that the Fund predicts global economic growth will drop an entire percentage point to 4 percent this upcoming year. In addition, Lipsky stated that a primary concern for the upcoming year should be increased inflation, particularly in developing economies.

Lipsky also expressed concern over the continued decline in the value of the dollar. While the United States has seen increased exports as a result of this decline, the drop has been one of the largest sustained episodes of dollar decline in the last 50 years. However, Lipsky said that despite drops in the value of the dollar, he believes it will retain its role as the dominant international currency in the long term, though perhaps sharing it with other powerful currencies like the euro.

Lipsky also predicted an economic slowdown in the EU. He said that this could potentially be more devastating than economic issues in the United States, due to a lack of coordination of financial markets within the EU.

Domenico Lombardi, nonresident senior fellow of the Brookings Institution and president of the Oxford Institute for Economic Policy expressed concern over IMF attempts to regulate currency imbalances. While the organization has been particularly useful with developing economies, Lombardi worries that highly developed nations like the U.S. may be less forthcoming with financial information, and less cooperative with policies and oversight from the Fund.