BSP to Loan IMF 1 Billion Dollars to Help Bailout Europe
"MALACAÑANG on Tuesday allayed concerns over the $1-billion loan of the Bangko Sentral ng Pilipinas (BSP) to the International Monetary Fund (IMF) and reminded those strongly opposed to the move that the BSP, under the helm of Gov. Amando Tetangco Jr., has consistently shown prudent fiscal management and stewardship." (source)
You know shit just got real when the IMF will borrow money from our central bank so they can help the bailouts in Europe. Nothing in that previous sentence makes sense to me. A third of our population still lives at less than 2 dollars a day and yet our central bank is invoking authority to lend a billion dollars to the IMF (when technically we are already in debt to them) to give to the eurozone countries that need bailing out like Greece, Ireland, Portugal, Spain. See, it all seems senseless. And by bailing out, it merely means giving all this money to their bankers. Here's MEP Nigel Farage explaining the irrationality of all this as the EU discusses bailing out Spain:
"In a statement, [Sen. Ralph] Recto said he is not opposing the government’s decision but said that the BSP has no sole proprietary rights over the Philippines’ dollar reserves. He added that the BSP should first request for a consensus or secure appropriation cover from Congress." (source)
Again, the executive branch feels like they can do whatever they want without the consent of the people or the people's representatives. That's ideally the point of the separation of powers. It's so that the executive can't just go around lending a billion dollars to people. But are these reserves really under the control of congress?
This is where the separation of powers get blurred. BSP will claim that they've already been given mandate to govern on the reserves as they wish. The IBON Foundation's different take on the issue (see IBON explains BSP loan to IMF) even reports that we've been lending to the IMF for some time now.
As a libertarian, I obviously don't agree with the sentiment that this 1 billion dollars should instead be spent by government for welfare or infrastructure. The IBON article above even explains that these reserves are separate from the government's budget. These are dollar reserves. Meaning the paper money printed by the Federal Reserve eventually become our reserve. This is paper lent to us as to give value to our paper.
Again, I introduce a position that's probably so different form the left/right paradigm. I want to expose the immorality of monetary policy that is monopolized. Just look at how ridiculous the whole Euro crisis has become. The reason they get to buy each other's debts is because all this is just artificial. The interest rates are artificial. The money is artificial. The markets are already rejecting all of it.
If we do not spend within our means and take care of our debt and rethink the real role of government, we will end up just like Europe. Having the concept of governments and money based on debt is all so immoral.