>X-Sender: [EMAIL PROTECTED] >Mime-Version: 1.0 >Date: Thu, 15 Jan 1998 12:28:10 -0700 >Reply-To: "Emilie F. Nichols" <[EMAIL PROTECTED]> >Sender: The Other Economic Summit USA 1997 <[EMAIL PROTECTED]> >From: "Emilie F. Nichols" <[EMAIL PROTECTED]> >Subject: IMF on the Hill Thurs Jan 15 Sanders, Greider >To: [EMAIL PROTECTED] > >Subject: Left-Right Coalition In Congress On Bailout Of Asia >From: Labor Video Project <[EMAIL PROTECTED]> >Date: 1998/01/09 > >/* ---------- "Left-Right Coalition In Congress On" ---------- */ >NO FAST-TRACK FOR THE IMF BAILOUTS >--- A Left-Right Bipartisan Forum on Capitol Hill --- > >Topic : Leading experts across the political spectrum critiquing the >hurried IMF/World Bank bailouts, substantially underwritten by U.S.taxpayers > >When: 10:00 A.M. -2:00 P.M. on Thursday, January 15, 1998 > >Where: 345 Cannon House Office Building (Cannon Caucus Room) > >Who's Invited: Any and all interested members of Congress, staff, media, >and interested non-congressional individuals and organizations > >Since the Congress adjourned in November, the Clinton Administration in >concert with the IMF, World Bank, and other international financial >institutions have committed nearly $90 billion to the financial rescue of >four troubled East Asian countries. These extraordinary bailouts have >been undertaken behind closed doors and without any semblance of open, >democratic debate inside or outside of the Congress. > >Nevertheless, plans are being made to force the Congress to approve these >bailouts as part of a supplemental appropriations bill as early as >February or March or to resort to other expedited undemocratic tactics. In >our view, no matter what position you take on these bailouts, the American >people and their elected representatives have the right to know what the >risks are, who benefits, who pays the costs, what other options exist. > >Come, listen, and learn why you should oppose "fast-track " approval of the >IMF bailouts. Also find out why the Congress must insist on full and open >debate in hearings and on the floor and that we follow the normal >authorization and appropriations timelines before obligating the American >taxpayer for these unprecedented bailouts. Already these bailouts are >being opposed for many different reasons. This forum will feature some >outstanding progressive and conservative policy analysts including the >following: > >Speakers and Respondents: > >* Brett Schafer, The Heritage Foundation >* William Greider, author and National Editor of Rolling Stone magazine >* Ian Vasquez, CATO Institute >* Jeff Faux, President of Economic Policy Institute >* James Glassman, columnist and scholar at American Enterprise Institute >* Robert Borosage, columnist, Director of Campaign for America's Future >* Marijke Torfs, Friends of the Earth >* Jim Sheehan, Competitive Enterprise Institute >* John Cavanagh, Institute for Policy Studies >* Walker Todd, financial policy analyst and formerly at Federal Reserve >* Mark Weisbrot, Preamble Center >* Jerome Levinson, Law Professor at American University >* Alan Tonelson, United States Business and Industrial Council >* Terry Collingsworth, International Labor Rights Fund > >Forum Co-sponsors include: > >U.S. Representatives Bernie Sanders, Barney Frank, Peter DeFazio >The Competitive Enterprise Institute >Friends of the Earth >Campaign for America's Future >Citizens' Trade Campaign > >Contacts: Bill Goold, Brendan Smith, or Mary Richards at (202) 225-4115 and >Marijke Torfs with Friends of the Earth at (202) 879-4283 or 783-7400(x37) > >Friday, January 9,1998 >Coalition to Push for Changes in Bailout Plan > >The group is hoping to convince Congress that the rescue package >is a misuse of government funds by bailing out the large international banks >that, in its view, made unwise loans in Asia. > >BY TIM SHORROCK >JOURNAL OF COMMERCE STAFF > >WASHINGTON -- An unusual coalition of liberals and conservatives is coming >massive bailout of >South Korea and other Asian economies. > >Members of the budding coalition range from pro-labor lawmakers like Rep. >Bernie Sanders, the only socialist in Congress, to the conservative >Heritage Foundation. > >They hope to persuade Congress that the $120 billion rescue program for >Asia, cobbled together by the IMF and the Clinton administration, is >misusing U.S. government funds by bailing out the large international banks >that, in their view, made unwise loans in Asia. > >"What we have here is socialism for the rich," said Vermont's Mr. Sanders. >"You're increasingly going to see a fierce debate, with President Clinton >and Newt Gingrich on one side, and an estranged left-right coalition on the >other, saying 'Don't put taxpayer money at risk.' " > >"The IMF is socializing the risks (in Asia) when most people are concerned >with changing the structures," said William Beach, senior economic fellow >with the Heritage Foundation. > >"The banks didn't attend to the structure and risk in Asia and figured >they'd be bailed out," he continued. "They're right. And that's a powerful >political theme." > >The IMF critics want to harness momentum from Congress' refusal last year >to approve new "fast-track" trade negotiating authority. They aim to either >defeat or attach conditions to Mr. Clinton's request for an additional >$17.5 billion contribution to the IMF. > >When it returns at the end of January, Congress will be asked to approve >$3.5 billion for an IMF emergency lending facility and up to $15 billion to >cover the U.S. share of a funding increase that would replenish IMF cash >spent since September. > >"I think we're going to see a recombination of the strange bedfellows >coalition that defeated fast track," said Alan Tonelson, a research fellow >with the U.S. Business and Industrial Council, a think-tank that supports >economic nationalism. > >Double-Edged Sword > >David Durrant, chief currency strategist for IDEA Inc., a New York >consulting company for international investors, said a move by Congress to >curtail U.S. funding for the IMF would be a double-edged sword. > >Although the IMF programs in place in South Korea and elsewhere won't be >affected, "there's no question the turmoil in emerging markets will >intensify because of the perceived threat," he said. > >But with Indonesia ignoring IMF prescriptions and South Korea and Thailand >seeking changes in their restructuring programs, congressional opposition >to the IMF could force them into taking adjustment steps on their own, he >said. > >"So there could be a good backlash," Mr. Durrant said. > >In a television interview this week, Treasury Secretary Robert Rubin >expressed his "hope and expectation" that Congress would approve the $17.5 >billion contribution. > >"It is extremely important that the United States provide the kind of >leadership that we are -- important because our economic interests are so >much at stake," he said. > >The IMF bailout seeks to restore financial stability to East Asia, which >has borrowed heavily to finance poor investments in real estate and >manufacturing. > >Heavy US Exposure > >It has drawn keen interest in Washington because U.S. banks are heavily >exposed. According to Federal Reserve Bank figures compiled by the >Congressional Research Service, six key U.S. banks have $19.2 billion in >outstanding loans in Indonesia, Thailand, South Korea and the Philippines. > >"The major banks have made huge sums of money in Asia, and now their loans >are turning sour," charged Rep. Sanders. "Well, that's what free enterprise >is about; sometimes you win, and sometimes you lose." > >Critics argue the IMF is imposing a draconian solution on Asia that >will cut economic growth, widen the U.S. trade deficit by forcing Asian >companies to export their way out of the crisis, and deepen political >instability by requiring mass layoffs of workers. > >Already, the currency devaluations in Asia are expected to cause a huge >rise in the U.S. trade deficit, which some analysts believe could reach >$300 billion. > >"We don't want the same outcome we saw in Mexico," said a senior aide to a >Republican lawmaker involved in trade issues, referring to the large U.S. >trade deficit with Mexico since the Mexican bailout of 1995. > >May Discourage Reforms > >The Heritage Foundation, which lobbied in favor of fast track, supports IMF >bridge loans for currency purposes but believes the huge amounts of capital >being funneled into Asia will discourage market reforms, Mr. Beach said. > >"This left-right coalition has come together because both sides conclude >that market solutions are the most effective," he said. Other groups set to >oppose the IMF include Ralph Nader's Public Citizen, the libertarian Cato >Institute and the environmental group Friends of the Earth. > >During the congressional debate, Rep. Sanders said he and his Democratic >allies will challenge President Clinton's authority to use U.S. funds for >the bailout without consulting Congress. > >"He's put at risk $20 billion without a vote," he said. "That is absolutely >irresponsible and possibly unconstitutional." > >Violates Amendment > >Rep. Sanders also charged that the IMF programs violate a 1994 amendment >that requires the U.S. government to veto IMF loans unless the recipient >governments guarantee internationally recognized worker rights. > >Indonesia has come under heavy U.S. criticism for imprisoning the leader of >its independent trade union movement. > >Next Thursday, Rep. Sanders' Progressive Caucus will sponsor a seminar on >the IMF for lawmakers and their staffs. Many Democrats and Republican >lawmakers are expected to attend, aides said. > >Over the next two weeks, several key lawmakers will be in Asia studying the >financial situation, including Sen. William Roth, R-Del., chairman of the >Senate Finance Committee, and Rep. Jim Leach, R-Iowa, chairman of the House >Banking Committee. > >Rep. Leach will preside over the first congressional hearing on the IMF >bailout the week of Jan. 26, while Sen. Roth will follow in February, aides >said. >
