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Press Release

    FreedomWorks Launches Campaign to Stop Obama IMF Bailout

    05/13/2009

    Washington, DC – In the wake of the White House’s announcement this week that it will seek to provide billions in new resources to the International Monetary Fund (IMF), FreedomWorks is mobilizing its more than 500,000 volunteers all over the country for an all-out grassroots effort in opposition.  The Obama IMF Bailout is the latest scheme put forward by the administration that threatens to waste billions of hard-earned taxpayer dollars.

    Specifically, Obama has pledged a $108 billion contribution to the International Monetary Fund (IMF), as part of a $500 billion global boost to IMF resources.  Congress is likely to consider making the $108 billion line of credit available to the IMF in the $94 billion supplemental 2009 spending bill to be considered by the Senate Appropriations Committee on Thursday.

    $250 billion of the $500 billion will flow into Special Drawing Rights (SDR) at the IMF.  SDRs act as sort of a global reserve currency that the IMF can use to increase liquidity quickly in countries of their choosing.  They are backed by several of the major world monies that are currently acting reserve currencies.  The central banks that receive the money would then be able to expand their money supply ten or more times based on the amount of SDRs they received.  That could mean that the $108 billion pledged by Obama could generate $1 trillion or more in inflation for the dollar and other major world currencies.

    Because of the obvious financial chaos that this irresponsible policy could cause, FreedomWorks campaign will focus its activist army on emailing, calling, and visiting targeted legislators urging its defeat.

    FreedomWorks president Matt Kibbe commented, “I don’t know where President Obama was on Tax Day this year, but he clearly missed the hundreds of protests that took place all over the country with taxpayers calling for an end to bailout-mania.  This IMF bailout scheme is just the latest outrage and FreedomWorks activists are ready to turn up the heat.  If Washington was surprised by the outrage created by sending billions to Wall Street and Detroit, wait until they see the outrage they create by sending billions of US tax dollars to foreign governments during a major recession.

    “Our monetary system is far from perfect, but more centralized control over the money supply is certainly not the solution.  What we need is less government control of the supply of money.  It, like any other good, should be controlled by the market and face the equilibrating effects of supply and demand.”