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To: Alex who wrote (21850)	10/17/1998 1:03:00 PM
From: Bucky Katt	Read Replies (2) \| Respond to of 116762

IMF bailout, per Newt>> With financial markets around the globe in turmoil, U.S. House of Representatives Speaker Newt Gingrich said on Friday the Republican-led Congress now had little choice but to replenish International Monetary Fund reserves. ''I am not sure this is a very good time to take a big gigantic gamble with the world economy,'' the Georgia Republican told lawmakers on the House floor, explaining why Republicans had reversed course on the issue. Gingrich and other House Republican leaders had for months attacked IMF economic policies in Asia and the fund's $23 billion bailout for Russia. They said U.S. funding would be squandered by the IMF and disparaged IMF Managing Director Michel Camdessus as a ''French Socialist.'' I guess now it's ok? What b/s... Nevertheless, congressional leaders agreed this week to hand over $18 billion to the Washington-based lending agency to refill coffers depleted by multibillion-dollar bailouts for Indonesia, South Korea and Thailand. Brazil next, then Mexico, Argentina, etc??? House and Senate Republican leaders agreed to include the IMF funding in a catchall government spending bill, which both houses are expected to approve early next week. President Bill Clinton must then sign the bill into law. In exchange for the $18 billion, the Clinton administration has promised to work with other nations to push through changes in the way the IMF does business. Under the agreement, the IMF would be forced to charge some crisis-hit countries more for loans, to demand quick repayment on some loans and to give the public and Congress more information about its policy decisions. The agreement was a major victory for the White House, which has been desperate to shore up confidence in the IMF at a time when world markets have been rocked by the worst financial crisis in decades. The storm has battered Asia and Russia and has spread to Brazil and other Latin American nations. ''We worked and worked and worked for eight long months until finally we were able to persuade the Republican majority to join with us in funding America's responsibility to the IMF so that we can protect the American economy and fulfill our responsibility to stabilize the global economy,'' Clinton told reporters on Friday. Congressional leaders said their requested reforms would make the IMF more accountable. Higher interest rates and shorter repayment periods might also discourage countries from lightly turning to the IMF for bailouts. ''A year ago it would have been impossible to have imposed these kinds of genuine, deep, real reforms,'' Gingrich said. He said it would have been ''irresponsible'' to withhold the IMF funding any longer. "I am not prepared to take a riverboat gamble and decide let's just eliminate the IMF funding and see how things work for the next year. And by the way, if the world economy crashes and we end up in a great depression. That would be an interesting experiment. ''We have to fund the IMF because we are the leader of the world. No one else can lead the world,'' Gingrich added. Where will this $18 billion come from? Thin air? How long can "they" keep pushing off the inevitable outcome? brillig.com