From Volume 37, Issue 17 of EIR Online, Published Apr. 30, 2010

Global Economic News

IMF Wants Global Tax to Feed Giant Bailout Fund

April 22 (EIRNS)—On April 24 and 25, the World Bank and IMF had their Spring meeting in Washington. The IMF is planning two kinds of taxes on banks and hedge funds, according to the BBC website, on April 21. One payment will be a "payment for financial stability," which should either flow into a fund or into national budgets. This would be paid by all financial institutions, banks, hedge funds, and insurance companies. Later, the amount should be defined according to whatever risks these institutions are willing to take. Hedge funds are supposed to pay much more than banks.

Also, a "financial activities tax" is to be imposed, which is defined according to the total income. The stability fund could amount to 2-4% of the GDP of a country. For Germany, this would mean, that German banks could have to pay something between EU50 and 100 billion. This includes all banks, including the regular chartered banks, S&Ls, Landesbanken, etc., thus a new, clear ripoff of those institutions that are still (somewhat) sound. No wonder, that British Chancellor of the Exchequer Alistair Darling supports the IMF plans.

In June, the G20 meets and will review the final concept. The announcement made last week by the IMF, that it wants to inflate its crisis-intervention fund from its present $50 billion to $550 billion, to be able to intervene "better and more" (for more bailouts, that is) certainly has to be seen in this context.

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