Here's the Mexico Myth... Gingrich & company Bailed Out Mexico, which was a backdoor bailout of Goldman Sachs and Wall st creditors. It was a failure, Mexico continued it's decline. Please read the entire article at the link.
http://www.cooperativeindividualism.org/mexico_naftaimpact.html
The peso crisis which began in December 1994 left Mexico in dire financial condition in which she held almost no hard currency reserves and had over $30 billion of foreign held debt coming due in 1995. Some $23 Billion of this was in the form of short term Tesobonos A major portion of this debt was held by U.S. investors and banks which had preferred the higher interest rates available in Mexican bonds. As the crisis started the Clinton Administration began a campaign to get congressional approval of a bailout package of $40 Billion which would cover the short term loan repayments and provide a needed hard currency reserve to help stabilize the imploding domestic Mexican economy. This effort stalled in Congress due to the perception that the U.S. taxpayer was being asked to bail out the money center banks which would nice profits from the bailout.
The U.S. financial establishment's bailout efforts were led by the new Treasury Secretary Bob Rubin and the Federal reserve chief Alan Greenspan. Both testified that if the package was not forthcoming, the fallout would devastate world financial markets. A later study by the World Bank concluded that the fallout would have had little effect on other world markets. The study also concluded that the December crisis had been .forced by wealthy Mexican businessmen who rushed to convert pesos to dollars after a late night private briefing on December 19 by Zedillo and the financial chiefs that revealed that the Mexico's currency reserves had nearly vanished. It is interesting to note that many of the big banks that were at risk in the repayment of the Tesobonos were the banks that owned the Federal Reserve In January the Federal Reserve Bank entered the foreign exchange markets to buy pesos in an effort to slow the continuing peso collapse. When Congress balked, the US reached for allies in the IMF and elsewhere. The Bank of International Settlements is an association of the central banks of the countries less affluent than the G7 and has generally been ignored by the US. Early in the Bailout discussions, Alan Greenspan and the Chairman McDonough of the Federal Reserve Bank of New York quietly joined the Board of Directors of the B.I.S. As Congressional sentiment hardened against the bailout, the Clinton Administration announced a bailout package which did not require the concurrence of Congress. It may also be noted that Secretary Rubin had headed the Wall street investment firm of Goldman, Sachs where he personally handled the accounts of many of the top Mexican business and political leaders. When Rubin was appointed head of the President's Economic Council he announced that he would recuse himself from decisions involving Mexico due to his extensive Mexican associations. Apparently, when he became Secretary of Treasury these restrictions no longer applied.
The bailout package, which was signed on February 21, 1995 after approval by Clinton and letters signed by Dole, Gingrich, Daschle, and Gephardt, provided a $52 Billion credit to Mexico which consisted of $17.8 Billion from the International Monetary Fund, $20 Billion from the U.S. Treasury exchange stabilization fund, $10 Billion from the Bank of International Settlements and the remainder from various U.S. banks. . As a condition of the loan the income from Mexico's oil exports was to be deposited in an account at the Federal Reserve bank as collateral against the U.S. Treasury loan. One can only imagine the behind the scenes arm twisting and promises the U.S. must have made to put this package together. The IMF had already lent Mexico the maximum amount that its rules allowed so that the additional $18 Billion was quite an exception. Also the B.I.S. had never made such a major loan to a non-member nation, but these impediment's soon gave way under the U.S. pressure. By using these International bank funds, Mexico was able to limit the amount of the $20 billion U.S. credit line that was actually used to only $12.5 Billion.
My new book coming just in time for XMAS,
"NEWT: The Grinch Who Stole From America"
We know, Newt Gingrich has been married three times. He has had two affairs during those marriages which is how he's had two divorces. Newt is the guy who was having an affair with an office staffer while persecuting Bill Clinton for having an affair with an office staffer. Newt Gingrich is the candidate of the conservative value's party? Newt the biggest hypocrite of any candidate running for the Republican nomination.
This story is bias, doesn't report every scarborough stated over a few shows about Gingrich
http://www.mediaite.com/tv/joe-scarborough-destroys-newt-gingrichs-conservative-principles/
Joe Scarborough Destroys Newt Gingrich’s ‘Conservative Principles’
video
by
Tommy Christopher | 12:09 pm, November 28th, 2011
The news that
Newt Gingrich has
secured the endorsement of New Hampshire’s Manchester Union Leader seems to have prompted something of a
feeding frenzy over at
Morning Joe, which spent a large portion of this morning’s episode alternately chomping on the candidacies of endorsee Newt Gingrich and
snub-ee Mitt Romney. While tough to narrow down, host
Joe Scarborough‘s litany of Gingrich’s “conservative principles” probably cut deepest.
The
Union Leader endorsement is the big political news of the day, and not just because it comes after a dead holiday weekend. The conservative paper’s stamp of approval is being portrayed as a game-changer for Gingrich, much as it
seems to have been for
John McCain during the 2008 race for the GOP nod.
As game-changers go, though, the
endorsement itself was some weak, tepid tea, citing Gingrich accomplishments that have the nostalgia quotient of a
Roxette concert, and noted that while Gingrich is “by no means the perfect candidate,” he is “worthy of your support on January 10.”
Co-hosts Mika Brzezinski and Joe Scarborough basically took turns basting Mitt Romney and Newt Gingrich in their own juices all morning, but it was Scarborough who effectively composed the Romney campaign’s next attack ad for them by rattling off a litany of Gingrich heresy.
“The Manchester Union Leader must have gone on and said that the principle, the conservative principle he stood on was calling Paul Ryan’s budget plan radical right-wing social engineering,” Scarborough began, but he wasn’t done by a damn sight.
Scarborough went on to list Gingrich’s support for the unfunded $7 trillion Medicare D program, “
amnesty for illegals,” and
mandatory health insurance (with an assist from
Mark Halperin). He ticked off Gingrich’s
ties to Freddie Mac, his
anti-global warming commercial with Nancy Pelosi, and finished with a two-fer, saying that Gingrich “flip-flops more than Mitt Romney. Newt Gingrich and Mitt Romney should have a contest. I’m so dizzy.”
There are probably a lot of conservatives who will dismiss Scarborough as a RINO, as they often do when they want to protect whatever delusion they’re nursing, but they’re not really the key audience for this, anyway. Joe Scarborough wields considerable influence in Washington, DC, both with the media and within the political bubble. He may be telling conservatives things that they don’t want to hear, but you can bet the other candidates are listening, and taking notes.
Here’s the clip, from MSNBC’s Morning Joe: