Pompeo: “No Rationale For US Tax Dollars” For Pakistan’s IMF Rescue
Exchange Stabilization Fund
The ESF can be used to purchase or sell foreign currencies, to hold U.S. foreign exchange and Special Drawing Rights (SDR) assets, and to provide financing to foreign governments. All operations of the ESF require the explicit authorization of the Secretary of the Treasury. By law, the Secretary has considerable discretion in the use of ESF resources.
When the United States adopted the revised articles of agreement of the International Monetary Fund (IMF) in 1978, Congress amended the Gold Reserve Act to provide that the dealings of the ESF were to be consistent with U.S. obligations to the IMF.
So the money IS there.
But why would we have/want to give Pakistan the money? We don't. But they are used to getting the money.
Step back in time
Secretary of the Treasury:
2006- 2009: Henry "Hank" Paulson Jr., GW BUSH
2009: Stuart Levey- interim, served 6 days, Obama transition.
2009- 2013: Timothy Geithner, Hussein.
2013: Neil Wolin, served 1 month.
2013- 2017: Jacob Lew, Hussein
ALL of the above were responsible for the banking crisis/collapse. They had considerable discretion of all funds.
SDR's are a creation/brainchild of the IMF.
ESF operations are normally conducted through the Federal Reserve Bank of New York in its capacity as fiscal agent for the Treasury Department.
With considerable discretion, a Timothy Geithner would be authorized to allow the FED free-reign over all financial matters of the Treasury . As their fiscal agent.
The FED- a PRIVATE, Non-Government Corporation can dictate what taxpayer funds are used or withdrawn from the ESF.
Sorry Paki's; that ship has sailed!