The Big Con

Congressman Ron Paul (R-Tex.) explains why George W. or John F. won’t talk about foreign aid during the upcoming debates:

The IMF provides a perfect illustration of the both the folly of foreign aid and the real motivations behind it. The IMF touts itself as a bank of sorts, although it makes “loans” that no rational bank would consider – mostly to shaky governments with weak economies and unstable currencies. The IMF has little incentive to operate profitably like a private bank, since its funding comes mostly from a credulous US Congress that demands little accountability. As a result, it is free to make high-risk loans at below-market interest rates.

The real purpose of the IMF is to channel tax dollars to politically-connected companies. The huge multinational banks and corporations in particular love the IMF, as both used IMF funds – taxpayer funds – to bail themselves out from billions in losses after the Asian financial crisis. Big corporations obtain lucrative contracts for a wide variety of construction projects funded with IMF loans. It’s a familiar game in Washington, where corporate welfare is disguised as compassion for the poor.

Dr. Paul adds that the IMF costs American taxpayers about $5 billion a year, much of it going to prop up unstable and reckless political regimes that bankrupt their own economies.

In short, the IMF is a con designed to fleece American taxpayers to enrich multinational corporations under the pretense of helping the poor.

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