The IMF — Down in the Weeds of US Politics

Following the financial collapse of 2008, the US insisted on some changes to the way representation was apportioned at the International Monetary Fund, and when Christine Lagarde took over following the resignation of Dominique Strauss-Kahn, one of her primary objectives was to increase the number of seats alloted to emerging nations. Another was to double the amount of funds available.

The second has raised the ire of some Republican politicians in the US who don’t want the US to support a bailout of Europe and its banks in the same way that the federal government bailed out US banks in 2009. From the Washington Post:

The dispute centers on Republican opposition to increasing the United States’ financial contributions to the agency, reflecting anger over IMF rescue programs in Europe that some GOP lawmakers argue have become too expensive and have put U.S. taxpayers at risk.

The IMF, used to being vilified by the left for the draconian conditions it put on distribution of its funds, was probably taken a bit off-guard by the Republican opposition. Here’s the lesson: It’s an election year in the US, money is tight, and it’s a political winner to bash any US aid to any foreign country during an election year. Some Democrats will probably join the bash-fest before November, but the difference is that the Republicans really believe the nonsense they’re peddling.