Clinton appeals for U.S. support for Asian bailout<\/p>\n
WASHINGTON (Reuters): President Bill Clinton appealed on
\nTuesday to the American people to support rescue deals for Asia's
\nailing tiger economies, saying it was the right thing to do for
\nthe United States and the world as a whole.<\/p>\n
The president also called on Congress to renew its commitment
\nto the International Monetary Fund, the agency that put together
\nmultibillion dollar bailouts to rescue the economies of
\nIndonesia, South Korea and Thailand.<\/p>\n
"The American economy remains sound and strong -- and I want
\nto keep it that way," he said in his State of the Union address.<\/p>\n
"But because the turmoil in Asia will have an impact on all
\nthe world's economies, including ours, making that negative
\nimpact as small as possible is the right thing to do for America
\nand the right thing to do for a safer world," he said.<\/p>\n
Clinton, however, faces an uphill battle persuading the
\nAmerican public and a skeptical Congress to support the bailouts
\nand the fund that engineered them.<\/p>\n
An alliance of lawmakers from the right and left launched a
\nlegislative assault on the IMF on Tuesday, proposing measures
\nthat could limit Washington's role in bailouts and cut off
\nfunding for the IMF.<\/p>\n
One of the measures, drafted by Rep. Bernard Sanders, an
\nindependent from Vermont, would prohibit the Clinton
\nadministration from using more than $250 million from Treasury's
\nExchange Stabilization Fund as part of any international bailouts
\nwithout congressional approval.<\/p>\n
Legislation by Republican Rep. Ron Paul would end all U.S.
\nparticipation in the International Monetary Fund, the agency that
\nput together emergency loan packages worth more than $100 billion
\nfor Indonesia, South Korea and Thailand.<\/p>\n
Both measures are certain to meet with stiff opposition from
\nIMF supporters in Congress and from the Clinton administration.
\nPaul's proposal stands little chance of passage because it is so
\nradical, several congressional aides said.<\/p>\n
House Majority Leader Dick Armey, speaking to public
\ntelevision's Nightly Business Report Tuesday, said U.S. funding
\nfor the global institution might be in trouble.<\/p>\n
"We have to ask what will the IMF do with our tax dollars.
\nWe ... don't know yet what they have asked some of these nations
\nin Asia to do," he said. "We're not going to just let our tax
\ndollars underwrite a failed crony capitalism out there."<\/p>\n
It was "a very big question" whether funding for the IMF would
\nbe renewed, Armey said, adding, "To a large extent the IMF has
\nfailed in the mission for which it was first created."<\/p>\n
The legislation, whatever its fate, marks the start of a
\ncongressional battle, pitting the Clinton administration against
\nan alliance of conservative and left-leaning lawmakers who insist
\nthat the IMF bailouts in Asia shackle the free market, and hurt
\nworkers and the environment.<\/p>\n
"At the very least, Congress is interested in changing how the
\nIMF works," said Ian Vasquez of the libertarian Cato Institute.
\n"But there's also a growing sentiment questioning whether it is
\nneeded at all."<\/p>\n
President Bill Clinton is asking Congress to approve some $19
\nbillion to boost IMF resources, which have been drained by the
\nrescue deals in Asia.<\/p>\n
The administration has already pledged to tap the Exchange
\nStabilization Fund if it needs money to pay the $8 billion U.S.
\nshare of last year's international rescue deals for Indonesia and
\nSouth Korea.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/clinton-appeals-for-us-support-for-asian-bailout-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}