Excerpts From Executive Statements At The IMF/World Bank Meeting

Tyler Durden's picture

Today has been a busy day for central planners around the world: the IMF and the World Bank are holding their spring meetings which has resulted in an avalanche of Bloomberg excerpts. Courtesy of Reuters, here is a full summary of the key statements by various high level officials. As usual anything that is being denied is about to hit us head on. Of particular note are the statements by TeflonTurboTaxTim Geithner.

IMF MANAGING DIRECTOR DOMINIQUE STRAUSS-KAHN ON INCLUSIVE GROWTH

"Don't rely only on the idea that growth will be enough, we need more
than growth. We need active (labor market) policies ... The risk if we
don't do this, is to have growth which will not be fair growth, not
inclusive growth."

"We have to work for the sustainability of
growth ... Recent events in your countries and other countries show that
when growth is not inclusive enough then it is a threat to the
sustainability of growth."

STRAUSS-KAHN ON AFRICA

"The
good thing about this recovery is that growth in Africa is picking up
more rapidly than after former crises when there have been long delays
before Africa picks up."

STRAUSS-KAHN ON WHETHER IT HIS LAST TIME PRESIDING OVER AN IMF MEETING?

"The question ... is irrelevant."

STRAUSS-KAHN ON CAPITAL CONTROLS

"For decades, this institution has said capital controls are just evil,
we don't want it, we are fighting against it, and each and every
country putting in place capital controls will be bashed by the IMF."

"We are taking a more pragmatic view now and saying it depends a lot and saying sometimes it may be useful..."

"From the point of view of the institution, yesterday capital controls
were not in the tool box but today capital controls are in the tool
box."

STRAUSS-KAHN ON GREECE

"I do (believe Greece can make it)... I understand how painful it is for the Greek people but I think Greece will make it.

"Greece will make it provided two things: first, that all areas of the program are really implemented in due time...

"Some part of what has been done is not working as well as we
expected. For instance, the richest people in the country are still not
paying the taxes they would pay in any other European country.

Second, what the Europeans have committed to do has to be done
too...There is the need of a more comprehensive plan from the European
side. The piecemeal approach dealing with one day interest rates,
another day something else is not working well ... and we are still
waiting for this to show up."

STRAUSS-KAHN ON CRISIS

"We
are still in a crisis, and the consequences of this crisis are still
very strong, not only in Europe but importantly in Europe.

"The
apex of the crisis is behind us but it would be part of the complacency I
am trying to avoid to believe we are in a post crisis era."

"We are still in a crisis and I think from many points of view we are still at the center."

STRAUSS-KAHN ON THE NEED FOR MORE JOBS

"Why do I say it's not the recovery we want? ... Not only because of
(global) imbalances. You may remember exactly one year ago my concern
was we may have a recovery without jobs ...

"It's too much to say
its a jobless recovery but it's certainly a recovery without enough
jobs ... There will be a lot of challenges to deal with, especially
because of youth unemployment."

"The challenge is clear: it's to preserve social cohesion without undermining macroeconomic stability.

"To do all this we need more international cooperation."

WORLD BANK'S ZOELLICK ON WORLD BANK ASSISTANCE FOR EGYPT

"We have discussions with the Egyptian authorities. We haven't yet
reached an understanding about the types of support that could be most
helpful.

"The Egyptian authorities are also discussing the
overall situation with the IMF, so those will be some of the discussions
going on over the week.

"The early indications are that given
the drop in the tourism industry and some of the other (sectors), there
are going to be some budget challenges to be addressed."

ZOELLICK ON AID FOR IVORY COAST

"Ivory Coast needs security, jobs, and justice. Working with regional
partners, the World Bank stands ready to offer important assistance --
financial, policy and technical.

"If the security situation
allows we can within the next couple of week reactivate some World bank
programs worth about $100 million to help the people in Ivory Coast."

U.S. TREASURY SECRETARY GEITHNER ON POSSIBILITY REPUBLICANS MIGHT NOT VOTE TO RAISE DEBT CEILING

"It will be deeply irresponsible to do it. People will advocate it up
there. They will say there's leverage in it, we can advance it. But that
would be deeply irresponsible and they will own the risk. It won't
happen in the end, but if they take it too close to the edge, they will
own responsibility for that miscalculation."

GEITHNER ON CONFIDENCE IN RECOVERY

"Despite the risks in oil, despite the financial challenges still
facing parts of europe, despite what's happened in Japan, the tragedy in
Japan, despite the headwinds that those create for recovery, what you
see is gradual healing, gradual strengthening in confidence that the
world economy is going to be growing at a reasonable rate. Of course we
want to make sure we sustain that, but as that happens, what you see is
the encouraging signs of people just being willing to go out and invest
again. Employment growth is increasing, people are taking more risk
again."

GEITHNER ON MARKET CONFIDENCE IN U.S. DEBT

"You
also see a lot of confidence in markets that the American political
system will be able to get our fiscal path on a sustainable position. If
you look at what we pay to borrow, the world basically believes that
our problems are manageable, our system will solve it, but you want to
make sure that we're earning that confidence every day. We have to act
to justify that, to sustain that."

GEITHNER ON REDUCING U.S. DEFICIT

"We've got very different ideas on how to do this, what the right thing
to do for the economy is. But the important thing (is) when you have
the president of the United States and the Republican leadership in
Congress both embracing the same basic target for deficit reduction,
roughly 4 trillion (dollars) over 12 years, so that our deficits fall
below 3 percent of GDP ... you've made the fundamental shift. That's
very important. It makes it very hard for future presidents, future
Congresses to decide that you can live with the risk of higher deficits
in the future."

GEITHNER ON VOTE TO RAISE DEBT CEILING

"They will do it.

"They understand that you can't take any risk the world starts to think
the United States won't meet its obligations. There's no conceivable
way that this city, this government can court that basic risk. It would
be deeply irresponsible to do that and you can't take it too close to
the edge.

"And you know, I sat with the president and the
leadership of both houses, both parties yesterday morning and the
Republican leaders say in private what they say in public, which is to
say 'of course we recognize we have to pass the debt limit, of course we
recognize that America will meet its obligation.

"But we also
want once again to take advantage of this moment to try in a sense to
lock everybody in to what you call in many parts of the world a fiscal
rule, a constraint, that over a period of many years will bring our
fiscal position down to a sustainable level."

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flacon's picture

Timothy G.: "we also want once again to take advantage of this moment (crisis) to try in a sense to lock everybody in..." (to the prison we have created and then throw away the keys so nobody escapes)

traderjoe's picture

They will not default. We must default on them.

traderjoe's picture

Starve the beast. Cancel your credit cards. Pay cash. Barter. Minimize your taxes. Buy local. Shop less. Bank local. Etc. Etc.

Holodomor2012's picture

Been tried.  We know the outcome.  You are not allowed off the ride while the ride is in motion.

http://www.youtube.com/watch?v=fr94ELW701Q&feature=feedf

traderjoe's picture

Bullshit. If everyone reduced their consumption 10% the system's collapse will be accelerated. Stop using your credit card half the time.

The power is still with the people. It's up to us to chose.

MarketTruth's picture

Keep bank balances at a minimum and store value in physical gold and silver holdings. Barter as much as possible.

TeresaE's picture

@Trader

+100

Fat chance of that happening voluntarily, we Americans will continue to use the plastic and buy the big screens until the day we implode.

Nice thought though.

rufusbird's picture

Checked the vid. The problem with it is their conspiricy tone. It is not like that anymore. It is all right out in the open. Quotes from the masters are at the top of these very pages....

IBelieveInMagic's picture

GEITHNER ON MARKET CONFIDENCE IN U.S. DEBT

I like Mr. Geithner's spin on market confidence in the US debt when conveniently overlooking the fact that without QE, we would have really seen what the market thought of US debt.

bonddude's picture

Speaking of default this gentleman makes it part of his business strategy thereby

crashing IndyMac, Sonoma Valley Bank, PFF Bank, Charter Oak Bank, United Commercial Bank,

and many other banks, REITs and dumb individuals who allowed him to open credit lines in

their names which he proceeded to run up. He uses straw borrowers/buyers and creates many

LLCs and although the FeDS are watching he is still operating.The count so far is upwards of

$500 Million. Hopefully, the rat trap is set. Santa Rosa Press Democrat is the only paper

following it.

Here's a nice cartoon to explain.

http://www.youtube.com/watch?v=17qhStEcluw&feature=related

 

Popo's picture

Is there really any difference between raising the debt ceiling and defaulting?   It's just two different ways of saying "We don't have the cash".

 

 

 

 

 

NotApplicable's picture

But my credit's good! Right?

bonddude's picture

zombie everything

tickhound's picture

Same as the OLD Fed...

ZOELLICK ON AID FOR IVORY COAST

"Ivory Coast needs security, jobs, and justice. Working with regional partners, the World Bank stands ready to offer important assistance -- financial, policy and technical.

"If the security situation allows we can within the next couple of week reactivate some World bank programs worth about $100 million to help the people in Ivory Coast."

 

Heard this story before... Ends with a loan that can't be paid back, and a fat position for the United "Cocoa" Company.

Cuz that's how we roll...

Ancona's picture

The Central Planners are on track to bleed every last dime out of our collective pockets.

Thanks!

flacon's picture

dime = 91.67% copper, 8.33% nickel.

Ray1968's picture

only a matter of time before the melt value of a dime is worth more than the dime itself. (still has quite a bit to go @ $0.0244). However the nickel is there already $0.0679

Problem Is's picture

Remember Obummer Fans:

The Change is in your pocket...

LawsofPhysics's picture

"It will be deeply irresponsible to do it. People will advocate it up there. They will say there's leverage in it, we can advance it. But that would be deeply irresponsible and they will own the risk. It won't happen in the end, but if they take it too close to the edge, they will own responsibility for that miscalculation."

Hey Timmy,  come on out to the farm, cause I own that risk and your ass already.

hedgeless_horseman's picture

GEITHNER ON MARKET CONFIDENCE IN U.S. DEBT

 

"You also see a lot of confidence in markets that the American political system will be able to get our fiscal path on a sustainable position. If you look at what we pay to borrow, the world basically believes that our problems are manageable, our system will solve it, but you want to make sure that we're earning that confidence every day. We have to act to justify that, to sustain that."

Absolutely zero foreign investors (including 'the world') believes that the interest rate America pays to borrow money is even remotely close to a market rate. 

They all know about POMO. Artificially high treasury prices equal artificially low treasury rates.  They all understand how a teeter-totter works.

http://www.investorsdailyedge.net/images/IDE_7-20-10.JPG

Timmy should stop continually using this artificial interest rate as his best justification for more debt.  He is the Sec Treas of the USA for God's sake!

NotApplicable's picture

Hey now, Timmah is not stupid, and wouldn't lie, as he lives in a political world, where no such thing exists. What has happened, is that you have instead misinterpreted his words.

Markets = Brian Sack's terminal.

Now, make the replacement, and you will see that the quote is perfectly reasonable. ;-)

Misean's picture

Anyone else just plain sick of these pompous asshats?

Zero Govt's picture

Oh Yes.... hopefully when all member Govts go bankrupt, particularly the IMF's main funder the US Govt, the unelected crones and windbags at the IMF will join the unemployment cues too while their useless organisation will be flushed down the toilet ...bring on that day  

Bicycle Repairman's picture

When governments go bankrupt, the IMF takes the collateral.  Wonder what the USA has put up as collateral?

TeresaE's picture

@Bicycle

Our homes dude (small businesses too).

Americans refuse to speak truth.  The US government is now the single-largest holder of mortgages, thus houses, in the country.  The Fed is right behind them.  Remember Fannie/Freddie and loans bought at 100% of face value (even as they continue to foreclose).

Warren Buffett said that Americans would wake up sharecroppers paying taxes to both China and the US government.  Once China owns our homes that is EXACTLY what would happen.

NotApplicable's picture

Nope, as we all keep coming back here to learn more about their abuse. When everyone here is talking about American Idol, then we'll know we've reached the terminal stage.

flacon's picture

Time for them to blow shit up. Let's get it on already. 

treemagnet's picture

Anybody know the safest place to sit on a plane thats crashing?

NotApplicable's picture

Waiting to step off of the wing, just like Bugs Bunny does.

mynhair's picture

Very bull(ish) comments.  Prepare for green.

cxl9's picture

GEITHNER ON REDUCING U.S. DEFICIT

"We've got very different ideas on how to do this,

Name one.

 

gall batter's picture

Dick Cheney said "deficits don't matter".  

Vendetta's picture

funny how so few complained about that comment back thn

gall batter's picture

about the same number who complained when Bush said the Constitution is just a goddamn piece of paper.

Moe Howard's picture

I am not a Bush fan either, but please stop repeating lies. The originator of the quote has retracted it. Why not use the truth instead of repeating lies? Lord knows there is enough to use.

"This article was based on sources that we thought, at the time, were reliable. We have since discovered reasons to doubt their veracity. For that reason, this article has been removed from our database."

I no longer stand behind that article or its conclusions and have said so in answers to several recent queries. In addition, I have asked that it be removed from a documentary film.

TeresaE's picture

@Vendetta.

 

Nope, there were plenty of us bitching about it.  We were appalled when the Patriot Act was signed.  We knew Iraq was a bad idea.  Record setting budget after record setting budget left us spewing venom.

We were probably the same ones who screamed back when Clinton gifted China and Walmart our manufacturing, then gave more to Mexico.

There were even a few of us pissed when Glass-Steagall was signed away.

But everyone else was too busy to notice.  Just like those outside these hallowed halls today.

Whom has time for complicated matters when American Idol fans voted Pia off?

 

Don't let these bastards continue to make this a red vs. blue issue.  It is US against THEM.

 

 

Cthonic's picture

Nice to meet someone else who apparently didn't wake up just yesterday.  Welcome.

mkkby's picture

Obviously you watch American Idol since you know who's on it.

Monday1929's picture

Did anyone remind Timmy to file his taxes by Monday? Being "overseas" is no excuse, Timmay.

Problem Is's picture

The IRS sends Timmay a polite "reminder" letter once a year for 5 years if there are any tax payments outstanding...

Confused's picture

He is part of the "club," officially now of course. So he doesn't pay taxes. 

hedgeless_horseman's picture

41 Obama White House aides owe the IRS $831,000 in back taxes -- and they're not alone

 

In the House of Representatives, 421 people owe a total $6,524,892. In the Senate, 217 owe $2,774,836. In the IRS' parent department, Treasury, 1,204 owe $7,670,814. At the Labor Department, where Secretary Hilda Solis' husband had some back-tax problems before her confirmation, 463 owe $7,481,463. Eighty-one workers for the Federal Reserve System's board of governors owe $1,076,733.

 

Over at the Justice Department, which is so busy enforcing other laws and suing Arizona, 1,971 employees still owe $14,350,152 in overdue taxes.

http://latimesblogs.latimes.com/washington/2010/09/congress-taxes-irs.html

anolmec's picture

please replace the term "jobless recovery"  with  "oligarchs protecting their wealth"

also replace the term "continued growth" with "strip mining the planet"