>> in my view, the imf help serve u.s. interests and our interests in sustaining global financial stability which is important to the health of our economy. so europe has to act. it can be a tool for helping achieve the world economy. and we want the imf to have resources to do its job. in 2009, congress approved a $100 billion increase, to borrow as well as modest increase in our quota. and the global economy. the backstop the rule of the fund, it goes back to 1962 which is when the swap lines were created as bill was mentioning earlier. this is final to promoting global stability. if we were to withdraw our funding i think it would harm -- it would weaken u.s. leadership in the institutions. i think it would put our standing funds in jeopardy and i think it would cause the fund to look to others to play a more influential role in its operations and activities. our support for the imf is very important. >> thank you very much. >> thank you. the vice-chairman from new hampshire is recognized for five minutes. >> thank you,

support that imf role. i do not believe that this would require additional u.s. funding of the imf, but just the use of resources we've already provided. the imf has almost $400 billion of uncommitted resources, and europe is planning to commit another 200 million euros to the imf with the possibility of some matching funds from certain noneuropean nations not including the u.s. the risk to the u.s. taxpayer from imf lending, i believe, would be small for a variety of reasons. a key one is that imf lending is in a legally privileged position that makes it much safer than, for example, the t.a.r.p. funds that were invested by u.s. taxpayers. imf loans are effectively senior in their claims to all other borrowings. this was done in order to stabilize the financial markets by protecting other suppliers of funds to the banks. in addition, even if everything does go wrong, the u.s. bears less than a fifth of the risk from imf lending. i want to etch sides our tax -- emphasize our taxpayers and citizens are alrea

that imf role. i do not believe that this would require additional u.s. funding of the imf but just the use of resources we have already provided. the imf has almost $400 billion of uncommitted resources. europe is planning to commit another 200 billion heroes to the imf with the possibility of some matching funds from certain non-european nations not including the u.s.. the risk to the taxpayer from imf lending would be small for a variety of reasons. the key one is that imf lending is and a legally privileged position that makes it much safer than the t.a.r.p. funds that were invested by u.s. taxpayers. imf loans are effectively senior in claims to all of their borrowing. the t.a.r.p. funds were deliberately invested at the level of equity which is much riskier. this was done in order to stabilize the financial markets by protecting other suppliers of funds. in edition, even if everything does gorong, the u.s. there's less than 1/bit of the risk. -- bears 1/5 of the risk. our citizens are already

that imf role. i do not believe that this would require additional u.s. funding of the imf but just the use of resources we have already provided. the imf has almost $400 billion of uncommitted resources. europe is planning to commit another 200 billion heroes to the imf with the possibility of some matching funds from certain non-european nations not including the u.s.. the risk to the taxpayer from imf lending would be small for a variety of reasons. the key one is that imf lending is and a legally privileged position that makes it much safer than the t.a.r.p. funds that were invested by u.s. taxpayers. imf loans are effectively senior in claims to all of their borrowing. the t.a.r.p. funds were deliberately invested at the level of equity which is much riskier. this was done in order to stabilize the financial markets by protecting other suppliers of funds. in edition, even if everything does go wrong, the u.s. there's less than 1/bit of the risk. -- bears 1/5 of the risk. our citizens are alread

that money will go to the imf in washington, d.c. that organization will use the money to help european governments deal with the sovereign debt crisis. it is an economic issue, but very much a political issue in terms of political changes. the electorate was to have their say. parliament was to have their say. it is whether a decision can be reached at the end of the summit in brussels on friday. the french president says there will be no second chance. >> when the leaders arrived to the summit, the task of persuading all 27 countries in the european union to agree to new rules of the eurozone and put it in writing looked like a nonstarter. the kiss -- nicolas sarkozy and angela merkel were adamant they would not leave without some kind of agreement, even if it involved only the 17 eurozone countries. an agreement was threatened with a veto. there was a pre summit meeting between david cameron, the german chancellor, and the french president. diplomats at the summit say attempts to get all 27 member states to agree to change the eu

let's y they lend it to the imf and the imf lends it back to up. >>. you could see european objections to the notion that the imf is a money good credit for the european lenders to the imf and they are lending to the crisis countries which are not money good and i could see a problem in congress around that. >> i think we should do that . i think we should support the imf but i could see how it could become difficult for this country. >> if you step back from all the financial details of what's going on, you have a project that was suppod to bring europe together and heal the wounds of world war ii. and for such a long time t political dream has trumped any economic logic. what has changedn the last few weeks is we're going to see that political dream essentiay go into reverse and it's becoming clear the your ozone is reopening some of those wounds and making the continent more fractured. >> at which point people are starting to say why are they doing. >> we haven't talked about sarkozy. and his relationship betwee france and germany and his competitio

thedministration in 2009 committed billions of dollars to the imf. for the imf.uropean deal is going to go through th imf at some capacity. >> the white house is saying to you, look, we are not asking for new money. we have already committed ts money. you cannot back out of it now. >> the imf is going to take back your rose as collatel just as theed did with the swaps. if the eurozone collapses, ter they worth? they are like confederate money all l the sudden. we will not have access to ththose. we are making the europeans loan the way we would a grocery store or a gas stationnd not a sovereign government. there is really no united europe. >> are we going to get a deal worked out by christmas? >> no one can agree on how to pay for it. it is like you are at a restaurant with a group of friends and no one knows how to pay for the bill when the check comes. democrats s have been pushing the millionaire surcharge. ultimately, some kind of agreement is going to have to come because the stakes arere too high. let me disagree with my collgue. if you maintain a tax but b

what the europeans are trying to do is they're trying to loan money to the imf, get a claim on the imf, and have the imf loan money to italy which would put the united states taxpayer on the hook for a 17.75%, whatever the size of the vote is that i think that should not be permitted. >> the opportunity for china to inject themselves in imf, and put forward, you know, put forward, you know, the equivalent amount in order to take on that sort of crest, and another 200 billion, let's say, is that sort of in your range of options, or likely? >> that could very well occur, but you've got the same problem as you do with the europeans lending to the imf. if the loans are made in a form that china has a claim on the imf, and the imf then goes and uses that money to lend to italy, that united states taxpayer is exposed to that loan to italy as a shareholder, having 17.75% in the imf. the way those loans should be made is they should be made to an administered account that what the imf is just a conduit and it doesn't expose the shareholders to any risk of those loans. >> mr. ely? >> yeah, one

currently has about $85 billion invested in the imf. in 2009, approved 100 billion-dollar credit line to the imf. the taxpayers, the u.s. taxpayers stand behind all of that. now, the imf currently has about $400 billion in available resources to help europe, if need be, including that u.s. funding, geithner sounded today like the u.s. might not oppose that. >> imf has been playing a very important role in this crisis so far. we expect that to continue. of course, the imf exists in some ways for this purpose. it's to help the members -- its members meet their financial needs, provided they are willing to meet the imf's conditions. >> but geithner aides continue to say that the administration has no plans to ask congress for any new taxpayer contributions to the imf to assist europe. shep? >> shepard: peter barnes, live in washington. peter, thanks. hundreds of millions of dollars invested in the bankrupt securities firm mf global may be gone for good. mf global is the brokerage firm that filed for bankruptcy about a month ago. up to $1.2

imf agenda resources. i think that is the good news. u.k. has not said that they will not contribute. they have said that they will consider a contribution early in the new year. they would prefer to do in the context of a broader g20 initiative. and here again, the u.k. is a little bit -- in europe for all the reasons that you have been following. and, indeed, the u.s. congress is undergoing difficult on the previous agreed expansion of imf resources. and im, with one or two others across the street, amongst very small number of people who are actually daring to propose that in the event of the european crisis that would threaten the stability of the global financial system, in that event increased imf resources should be directed to europe, and that requires a u.s. contribution as well as chinese contribution. there are very few takers on this view, but i guess that's why i work in a think tank. [laughter] so, you know, i'm paid to thank. and i think that if italy cannot repay its debts, that's the united states problem as well as germany'

this amount of money is going to be length to the imf and pumped back into europe as a way of gettingrestrictive bailout laws. the euro chair is urging g-20 nations and other big contributors to chip in into the imf bailout fund charles? >> what looks like a correction to a misstep, mario draghi says he has no doubt the euro will survive. this comes off the financial times newspaper in which draghi didn't sound quite that sure. when the newspaper asked about the possibility of countries leaving the euro zone, he said when one starts with this, you never know how it ends really. speaking for the parliament, draghi defended the staying power of the single currency. >> i have no doubt whatsoever about the strength of the euro, about its permanence, about its ir reversibility. but you have a lot of people, especially outside of the euro area who really spend a lot of time in what i think is speculation, namely, what happens if, what happens if. >> but even as draghi puts a brave face on things, he warned that around $1 trillion of bank bonds, sovereign bonds and collateralized debt obliga

will america contribute anything via the imf? if so, how much? it's all open questions at this point. megyn: of course that's the international monetary fund. >> sorry, yes. megyn: we're the biggest shareholder. if we decided we wanted to help significantly with a bailout or whatever you want to call it to save your and its currency but the imf, and they're not going to come directly to congress or the american taxpayers, there's no way people would support that is the way i'm told, if we do so through the imf, how would we do it, who would be able to decide that? is it geithner, is it bernanke? who decides the purse string controls for americans when it comes to our imf role? >> america rules the roost in the imf. if we want to commit money to europe in a bailout, we do it. that's it. now, we provide 17 percent of the budget of the imf, the international monetary fund, so that any money that goes from -- from the imf to the european bailout, part of it will come from the american taxpayer. it was committed back in 2009. now, the administration s

from now on, we restrict the idea to the imf principles and practices. second, as regards the medium and longer term, we agreed on a new fiscal conpact with new fiscal rules. member states will transpose it into their national legislation at constitutional or equivalent levels. our rules on excessive deficit procedure will become more automatic for the euro area members and key elements of this new approach are the following. first, building on the stability and gross backed budgets must be balanced in structural terms that is over the economic cycles. two, the rule must be defined at treaty level and incorporated into national rules. three, automatic adjustment mechanisms to ensure correction in case of deviation must be defined by the member states on the basis of principles proposed by the commission. and four, bringing reversed qmv to the site of commission proposals at the very beginning of the deficit procedure so that this will apply throughout the procedure. besides that, as agreed in october member states under an excessive deficit procedure wil

and effect is quite striking that the imf chief economists have been criticizing europe for carrying out the kind of policies that they've dedicated. if you're not is in a recession and it's carrying out austerity which is the worst possible thing to do in the recession and the imf is counseling them not to do that and to turn towards trying to stimulate the economy which we should be doing, too so if it isn't a pretty story, but they are not just devils and the are coming out of the dhaka round tradition which is rooted right here mostly in the economic planning and economic policies which have a pretty ugly consequences pulling them aside out of this and sometimes beginning to prosper that's one of the reasons latin america has had substantial improvements and moves towards independence but it's not a scam. >> if you haven't been down to the occupied wall street please go down. [applause] to me it is inspiring to get i was there the other day to provide think we should support them every way we can. >> a thing to better meet for a microphone. >> the way that we continue to fight th

as you say, we provide 17% of the imf's budget. so if imf comes up with, say, a trillion dollars -- that's $170 billion u.s. dollars in there, and that is taxpayer dollars. that's not printed dollars from the federal reserve, that's not created money, that is taxpayer dollars going through the treasury into the imf, a direct u.s. bailout of the europeans. now, that is what president obama wants. he wants to bail out the your peens to -- europeans to prevent that depression, but it will have a very tough political sell. how would we explain, how would the president explain that he is bailing out the europeans when they won't do it themselves? megyn: it's tough to know what americans should be rooting for. we don't want to see europe collapse since we're so tied to europe, but i'm sure american taxpayers are reluctant to bail out the likes of greece when, you know, americans here are struggling more than ever. >> i guess what we in america would most like to see is that the germans agree to a bailout internally of europe. where our m

in fact, it's kind of striking that the imf, chief economist, has been criticizing europe for carrying out the kind of policies that they have advocated. europe is in a recession, and it is carrying out austerity policies which is the worst possible thing to do in the recession. and the imf has actually counseled them not to do that and it turned into try to sting the economy, which we should be doing, too. so they are not just devils and they're coming out of a background tradition, which is rooted right here mostly in economic planning and economic policies, which have had pretty ugly consequences over decades. countries have been casting them aside, point themselves out of this, sometimes beginning to prosper. that's one of the reasons why latin america has a substantial improvement over the past decade also. but it's not a scam by any means. >> i'd like to say before him a question, if you haven't been down to wall street, the occupy wall street, please go down and say hello. [cheers and applause] >> to me it's really inspiring. i was down to the other day and what wonderful people

the imf vehicle is the most logical one for them. it gives a greater assurance and spread the burden around. it gives you a multilateral voice which is what they want. under the right circumstances, china will help out and cannot afford not to. europe is too big to fail. >> peter, what do you think? >> i agree with much of that. i think china would wish to assist in the rescue for the euro situation if they knew how. after the last summit in brussels, mr. klaus regling was sent to asia to explore the potential relationship of beijing and tokyo in particular and explore how they might support it. the first port of call was basing any was received very well by the minister of finance. he left for tokyo without a press release. evidently, the objective of these discussions was to see how willing the chinese would be to support the leveraging of the european stability fund from 440 billion euro to 1 trillion euro. the chinese or realized that bureau problem is not a financial problem. it is a political problem between north and south. by

the eu plans to extend as much as 300 billion euros to the imf. the statement notes the eu plans to urge other countries including the group of 20 nations to join in providing funds to the imf. but it is uncertain just how much support will actually be given. >>> the scandal at olympus is looking to earn to boost its capital. possible private investors may include fuji film holdings and sony. the long camera businesses are apparently drawing attention of potential buyers -- subscribers. this move comes after the company released last week its earnings report for the half year through september. the firm posted a net loss of over $400 million. the financial statements also show that olympus' net assets fell by around $1.3 billion. that makes the net asset figure around $590 million. it reflects the huge losses. the focus now is how on olympus will proceed with capital boost. the tokyo stock exchange put it on the watch list and whether to keep it listed as a company or not. >>> saab will go out of business after a buyout negotiation with chinese co

imf enlargement, and d.c. be support, but the banks, which it is not doing the time, and to sovereign when necessary. the essence of the current stalemate in europe and its inadequate policy response is that there is no agreement, either on how the burden of adjustment will be shared in the short term, nor is there trust that in the long term a fiscal union will not turn into a trance for union from the north to the south. on the other hand, everyone is aware that we all lose a lot if no solution is found. the big losers will include, of course, the periphery of europe, but also germany, the u.k., which is in the you, but not in the eurozone. it could include the united states which is europe's bigger external creditor, and for whom europe is the largest export market and for similar reasons it will include china. even in good circumstances europe is likely to see a shallow recession, indeed, one that has probably already begun. this is in fact the baseline that most people are not working on. however, in the

gets behind the imf right now.he imf can play a very important role in helping sort out the euro zone mess. that's tough for a lot of congress members to agree but important. secondly, it is very important that they reopen discussion about fiscal stability and about measures to deal with american debt problems. otherwise, you can guarantee the next year that will be a lot of discussion about whether the u.s. had heading in the same direction and, say, greece, or something like that. thirdly, these issues to do with the payroll tax reforms, stimulus questions, i mean, if the u.s. economy is softening and the recent data mixed, then it is going to be very important that the folks in war wash show -- folks in washington show they can take the initiative and provide some type of reassurance at a time when so many consumers and businesses are feeling very scared. >> the word you use initiative and reassurance, richard, it's interesting because on both sides of the aisles and both sides of the atlantic, there's this sort

so, the issue on whether the imf could be used as a channel is complex. the point of fact is that there should be respect of the spirit of the treaty. >> for many listening, that seemed to rule out a lot. this is a man who much washed every word. --, who must watch every word. >> this does not mean that the ecb will respond. no, please. >> the ecb is there and it is not letting governments off the hook. if leaders do not find a road out of the crisis tomorrow, the central bank might yet have to do to rescue the sinking economy. >> we believe that the eu leaders are still meeting. you have more market reaction to the events in europe. >> indeed, i do. obviously, this is having a huge influence in asia. yet again, as you mentioned, european leaders hammering out a deal to save the euro in brussels. the european central bank dashed hopes of there would be financial help for the region. in asia, they are taking their cues from europe and the u.s. some of these stocks have given back some of their losses from earlier. you are seeing the nikkei, the kospi, aust

the head of the imf, christine lagarde, has issued a stark warning. ying the world could plummet into the 1930-style depression unless all nations joined together to fix's in europope spiraling debt crisis. e said no economy in the world will be immune to the crisis that is, in herer words, not ony unfolding but escalating. >> this was the first time imf managing director christine lagarde had issued such a stark warng about the state of the global economy. >> at it is down, downside risk, revision downward, slow-growth than expected, higher deficit th predicted. and public finances thaare not in particular good condition. anthat is pretty much true the world overer. to be considering its responsnse to save the euro. they agreed to the brussels accord at the summit. eu members, but non-eurozone countries, the czechepublic and hungary, appeared to rock the boat summit, backtracking on, and tax popolicy at least. >> we do not want to give up the results of independent hungarian tax policy that has made t the hungarian e econo competitive. when we negoti

the imf has received billions of dollars in the latest attempt to try to build of the eurozone. -- bail out the eurozone. >> it is noon in singapore. >> it is 4:00 a.m. in london. welcome to "newsday." >> the united states, japan, and south korea are considering holding talks on the situation in north korea after the death of kim jong il. the chinese president went to the north korean embassy in beijing. china has been no. correa's closest ally, and a visit underlines that support. john simpson reports. >> this is the weird, reclusive figure who ran the world's most secretive country, and did it as though it was his own private playground. looking on was his son, kim jong un, who is around 28. no one knows for sure. he will take over. the old leader died on saturday, but state television only announced it today. the news unleashed a storm of emotion, genuine or otherwise. in north korea, you have to mourn the leader as was light as possible, especially if the cameras are on. but if you are a member of the political elite, you may well be really sorry he is gone. no one knows what will h

there are $390 billion available from imf they could loan to europe. that's not nearly enough.ey add their resources to that, pushes it through the imf that could solve the problem. >> just wait until that gets passed in the debate. >> which brings us to ron paul, we didn't talk about ron paul. we want to carry on. 18% is number two in "the des moines register" poll. where do you think that's going to take him? >> he has an organization. newt gingrich is full of ideas. he's full of platitudes and sound bites. but ron paul has an organization in all of these key early states. his base is enthusiastic. and they will come out in support. >> low ceiling but an absolutely solid floor. on friday, on fox news, he was asked, might you run as a third-party candidate, he said i'm not thinking about that, i'm doing pretty well. that is study in nondenial. the fact is, he has the infrastructure in place to re-elect mr. obama. >> already newt gingrich has been announcing new precincts in south carolina. the chances that ra herm yaen cain separation is going to move to newt gingrich, that's

nations, and how they're planning to do this is to go through the international monetary fund or the imf. russian president medvedev med the announcement on thursday after two days of talks in brussels with eu officials. european council president was one of the did he go gates. medvedev said 41% of the russia's foreign reserves are in the euro. he said it's important for russia that european countries overcome their difficulties and protect the euro. he stopped show of revealing the scale of support, but several media report that an adviser to the president said a maximum $20 billion will be provided. on friday last week eu leaders agreed at the summit to provide a maximum 200 billion euros in loans to the imf. they're hoping to draw funds in return from countries outside the eu including emerging economies. >>> japan's financial regulator has decided to punish citibank's japanese operations as early as friday. it says the bank failed to explain fully about investment risks. the financial services agency plans to order citibank to partially suspend its operations for one month. the bank

is it time for the imf to step in? >> the problem does not the response of the imf or the central bank, the problem is with the individual countries themselves -- the day of reckoning is here. they will have to rein in their spending, get their budgets in order. the same issue we are facing in this country -- political will, though will be able to take some real heat internally, domestically, to make these changes. >> if you believe there is no tomorrow as well. >> it suddenly struck me, what you are looking at this sort of what the united states was like when it was a confederation and it was not a united states. you see the value of a strong, central government. they don't have one that can actually act. they may not have one for different reasons, because of political paralysis, but our structure is sounder. they are struggling. the u.k. saying we will not participate in new treaties because we do not like one part of it, and they can't do anything because of that. >> and the running out of time. europe as far as i

to some countries and looks like they're going to do this through the international monetary fund or imf. russian president made the announcement after two days of talks in brussels with eu officials. he said 41% of the foreign reserves are in the euro. he says it is important for russia that european countries overcome their difficulties and protect the euro. he stopped short of revealing the scale of support, but several media report an adviser to the president said maximum $20 billion will be provided. on friday last week, eu leaders agreed at the summit to provide a maximum 200 billion euros in loans to the imf. hoping to draw funds from countries outside the eu, including emerging economies. >>> on wall street, the dow-jones average snapped three days of losses due to encouraging economic data on jobs and manufacturing. to see how things are kicking off in japan, let's cross-over to ramin mellegard at the koch tokyo stock exchange. ramin, good morning. how are the tokyo stocks looking this morning? >> good morning, ai. after the weekly jobs numbers, you mentioned, and federal reserv

he's please, lagarde from the imf is pleased. you're getting positive results coming out of those people on the outside sort of who have a lot of influence on this that at least now we have this treaty, we have this mechanism. we have this agreement. it may not be all 27 but it's close. >> okay, jim, thanks very much for that. jim boulden live from brussels. nina? >>> andrew, we're covering all sides to this particular story from the politics to the people directly affected by the crisis. and later this hour we'll be in greece, ground zero the euro zone meltdown, homelessness has been on the rise there for a number of months. as harsh spending cuts force people on to the streets. then we're going to be going back to brussels to talk to european council cabinet member richard corbett about the political divisions in the belgian capital. >> i want to go back to something jim was talking about there, the market reaction. we saw the markets here in asia negative. in europe they've been in and out of positive territory. investors are

the former head of the imf walked free, his lawyers acknowledging there had been a brief sexual encounter. they say it was entirely consentual. some believe mr. strauss-khan was set up by political opponents seeking to destroy his presidential ambitions. they seized upon this footage, showing jubilant battelle security staff moments after the police were called. but the hotel. company describes as not sense any suggestion its staff is involved in a conspiracy. -- but the hotel company describes it as nonsense any suggestion its staff is involved in a conspiracy. >>> the hollywood sign is an icon of the independent industry and a real pain to live next to. that is what healthy homeowners are saying about the famous letters. for years, people left on their way to the neighborhood to photograph, but now gps technology has them positively flocking there and the residents are not happy. >> everybody comes to hollywood, the law to make it in the neighborhood. >> it is iconic. it symbolizes a century of show biz, and the tourists love it. seeabsolutely fantastic to it. >> at least 10, 15 feet fr

gets behind the imf right now and shows that the imf can play an important role in sorting out the eurozoneh for congress members to agree. but it's important. secondly it's very important that they re-open the discussion about fiscal stability and about measures to deal with american debt problems. otherwise you can guarantee that next year there's going to be a lot of discussion about already the u.s. is heading in the same direction as greece or something like that. thirdly, these issues to do with the payroll tax reform, the stimulus questions, if the u.s. economy is softening and the data in recent days have been mixed it's going to be very important that the folks in washington show that they can actually take the initiative and provide some type of reassurance at a time when so many consumers and businesses are feeling very scared. [♪...] >> announcer: now get a $250 airfare credit, plus save up to 65%. call 1-800-sandals. certain restrictions apply. >>> top stories are straight ahead, and we'll tell you twha these three women did to earn the nobel peace prize. holiday season, just a

is it time for the imf to step in? >> the problem is not the response of the imf -- the problem is the individual countries themselves. the day of reckoning. the day of reckoning is here now. they lived beyond their means and they are going to have to rein in their spending, get their budgets in order. the same issues we are facing here in this country -- it comes back to the words i used before, political will. taking some real heat, internally, to make these changes. >> tomorrow as well -- >> the also see it -- it suddenly struck me that we are looking at is sort of what the united states was like when it was a confederation and it was not a united states. and you see the value of a strong central government. they don't have one that can actually act. they may not have one for the reasons, political paralysis, but our structure is sound then there's. they are struggling been in the u.k. saying we will not for dissipate with you in your new treaties because we do not like one part of it, and they can't do anything bec