More from The New York Times:
“In addition to the debt assistance, the administration has thrown its support behind a $4.8 billion loan being negotiated between Egypt and the International Monetary Fund. Last week, it dispatched the first of two delegations to work out details of the proposed debt assistance, as well as $375 million in financing and loan guarantees for American financiers who invest in Egypt and a $60 million investment fund for Egyptian businesses.
The assistance underscores the importance of shoring up Egypt at a time of turmoil and change across the Middle East, including the relatively peaceful uprisings in Egypt and Tunisia, the still-unfinished transition in Libya, the showdown over Iran’s nuclear program and the war in Syria.
Given Egypt’s influence in the Arab world, the officials said, its economic recovery and political stability could have a profound influence on other nations in transition and ease wariness in Israel about the tumultuous political changes under way.”
Note: The U.S. government is a 17% stakeholder in the International Monetary Fund. What does that mean?
WSJ Sep 5, 2012: “The IMF is akin to a global credit union. Members kick in money. The institution’s board lends it out.
Each member has a “quota”—that is, a financial stake in the IMF, expressed as a percentage—and contributes accordingly. The U.S. quota is 17.09%, followed by Japan at 6.12%, Germany at 5.98% and France and Britain at 4.94% each.
Does that mean that the U.S. is responsible for 17% of the IMF’s portion of the Greek package? Not exactly.
First, though all countries are theoretically responsible for investing in the IMF’s lending pool, not all of them have currencies that potential borrowers can use. (Think of Zimbabwean dollars or Venezuelan pesos.)
The IMF doesn’t say that outright. Instead, it uses the concept of “usable resources,” meaning it uses money from countries that are considered financially sound. About 21% of the quota contributions to the IMF were “non-usable,” according to the IMF, as of January 2010.
Because the U.S., Japan and big European countries are in the “usable” camp, they finance a larger percentage of IMF funding than their quota would suggest.”
The U.S. taxpayer is ‘standing behind’ a large share of the $4.8 billion IMF loan package to Egypt – well over $800 million. Egypt also receives $1.3 billion per year as a military assistance package from the U.S.. And they just received a $1 billion loan write-off from the U.S. Government.
There is no legitimate reason why, if the U.S. Government can extend funds to foreign countries (no collateral involved) and forgive loans to those same countries (with no collateral obligation required), that U.S. citizens should not also be granted the same equal access to direct credit extensions.
After all, it is our money.
The Leviticus 25 Plan would pay for itself – over a 10-year period. And it is fully collateralized.
The Leviticus 25 Plan.