“Right now, 17 percent of the IMF funding pool that the $40 billion bailout is being drawn from comes from U.S. taxpayers. If that ratio holds true, that means American taxpayers are paying for $6.8 billion of the Greek bailout. Although the $108 billion extra that Congress approved for the IMF in 2009 hasn’t yet gone into effect, you can bet that once it does Greek bankers will come to the IMF again with their hat in hand.”
That assumes that the IMF fund draws equally on the the contributions of all of its member nations. It also fails to acknowledge that the US does need to indirectly aid Greece and stop the chance of contagion. US banks have exposure to sovereign debt both from Greece and other weak euro countries. Those US financial firms could have their balance sheets significantly damaged.
The US trading relationships, especially exports. could be diminished if Europe enters another financial crisis. The $6.8 billion number may be wrong, but even if it is correct it is cheap insurance.
Douglas A. McIntyre
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