Monday, September 26, 2011

UK Families face £5,000 bill to bail our debt-stricken Euro nations, "what does Europe do for us again? oh yeah they gave us Human Rights Act

Britain could be asked to find £115billion to rescue debt-stricken countries – nearly £5,000 per household.

Fears were growing last night that the International Monetary Fund might not have enough cash for a global bailout of struggling economies.

Its crisis fund may need to grow ten-fold – meaning a huge increase in contributions from the UK.

Christine Lagarde, the managing director of the IMF, said the current war chest of around £250billion ‘pales in comparison with the potential financing needs of vulnerable countries’ and needs to be expanded to deal with ‘worst-case scenarios’.

Sources in Washington said the IMF’s pot of cash could be expanded to £2.6trillion although officials in London said that figure looked ‘incredibly high’.

Mrs Lagarde’s warning came as U.S. President Barack Obama said the debt crisis in Europe was ‘scaring the world’ and that eurozone leaders were not dealing with the issue quickly enough.

And a top Bank of England economist urged leaders around the world to stop the world plunging back into recession. ‘It’s doing something rather than just saying something that counts,’ said Ben Broadbent, a member of the Bank of England’s Monetary Policy Committee charged with setting UK interest rates.

Britain is liable for 4.5 per cent of IMF funding – meaning it would have to contribute around £115billion to an enlarged bailout fund, or £4,600 per household. Read More