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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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Thu, 04/14/2011 - 11:28 | 1168861 bulbar
bulbar's picture

F'ing moron

Thu, 04/14/2011 - 11:38 | 1168900 flacon
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)

Thu, 04/14/2011 - 11:52 | 1168948 traderjoe
traderjoe's picture

They will not default. We must default on them.

Thu, 04/14/2011 - 11:58 | 1168984 NotApplicable
NotApplicable's picture

Good luck with that.

Thu, 04/14/2011 - 12:08 | 1169031 traderjoe
traderjoe's picture

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

Thu, 04/14/2011 - 12:35 | 1169069 Holodomor2012
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

Thu, 04/14/2011 - 12:40 | 1169180 traderjoe
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.

Thu, 04/14/2011 - 13:41 | 1169432 MarketTruth
MarketTruth's picture

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

Thu, 04/14/2011 - 15:52 | 1169995 TeresaE
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.

Thu, 04/14/2011 - 13:13 | 1169308 rufusbird
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....

Thu, 04/14/2011 - 14:23 | 1169615 Holodomor2012
Holodomor2012's picture

too true

Thu, 04/14/2011 - 12:01 | 1168992 IBelieveInMagic
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.

Thu, 04/14/2011 - 12:39 | 1169174 bonddude
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

 

Thu, 04/14/2011 - 11:47 | 1168929 Popo
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".

 

 

 

 

 

Thu, 04/14/2011 - 12:01 | 1168987 NotApplicable
NotApplicable's picture

But my credit's good! Right?

Thu, 04/14/2011 - 14:05 | 1169530 sgt_doom
sgt_doom's picture

Ditto, bulbar!

And what are my comments?  What he says,

http://www.economicpopulist.org/content/global-agenda-privatizing-planet-part-deux

 

 

Thu, 04/14/2011 - 11:29 | 1168865 bonddude
bonddude's picture

zombie everything

Thu, 04/14/2011 - 11:30 | 1168870 doomandbloom
doomandbloom's picture

the NEW fed.

 

Thu, 04/14/2011 - 11:57 | 1168963 tickhound
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...

Thu, 04/14/2011 - 11:28 | 1168871 Ancona
Ancona's picture

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

Thanks!

Thu, 04/14/2011 - 11:34 | 1168886 flacon
flacon's picture

dime = 91.67% copper, 8.33% nickel.

Thu, 04/14/2011 - 11:48 | 1168924 Ray1968
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

Thu, 04/14/2011 - 11:44 | 1168926 Problem Is
Problem Is's picture

Remember Obummer Fans:

The Change is in your pocket...

Thu, 04/14/2011 - 11:28 | 1168872 LawsofPhysics
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.

Thu, 04/14/2011 - 11:57 | 1168902 hedgeless_horseman
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!

Thu, 04/14/2011 - 12:05 | 1169014 NotApplicable
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. ;-)

Thu, 04/14/2011 - 11:28 | 1168873 Misean
Misean's picture

Anyone else just plain sick of these pompous asshats?

Thu, 04/14/2011 - 11:42 | 1168907 Zero Govt
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  

Thu, 04/14/2011 - 12:04 | 1168994 Vendetta
Vendetta's picture

+47

Thu, 04/14/2011 - 12:02 | 1168995 Bicycle Repairman
Bicycle Repairman's picture

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

Thu, 04/14/2011 - 15:52 | 1169981 TeresaE
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.

Thu, 04/14/2011 - 12:10 | 1169032 NotApplicable
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.

Thu, 04/14/2011 - 11:32 | 1168875 flacon
flacon's picture

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

Thu, 04/14/2011 - 11:31 | 1168880 treemagnet
treemagnet's picture

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

Thu, 04/14/2011 - 12:05 | 1169011 LowProfile
LowProfile's picture

Outside

Thu, 04/14/2011 - 12:12 | 1169038 NotApplicable
NotApplicable's picture

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

Thu, 04/14/2011 - 11:33 | 1168882 mynhair
mynhair's picture

Very bull(ish) comments.  Prepare for green.

Thu, 04/14/2011 - 11:31 | 1168883 cxl9
cxl9's picture

GEITHNER ON REDUCING U.S. DEFICIT

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

Name one.

 

Thu, 04/14/2011 - 12:02 | 1168989 gall batter
gall batter's picture

Dick Cheney said "deficits don't matter".  

Thu, 04/14/2011 - 12:03 | 1168999 Vendetta
Vendetta's picture

funny how so few complained about that comment back thn

Thu, 04/14/2011 - 12:09 | 1169022 gall batter
gall batter's picture

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

Thu, 04/14/2011 - 13:57 | 1169500 Moe Howard
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.

Thu, 04/14/2011 - 15:47 | 1169959 TeresaE
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.

 

 

Thu, 04/14/2011 - 16:17 | 1170110 Cthonic
Cthonic's picture

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

Thu, 04/14/2011 - 17:34 | 1170451 mkkby
mkkby's picture

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

Thu, 04/14/2011 - 11:33 | 1168884 Monday1929
Monday1929's picture

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

Thu, 04/14/2011 - 11:41 | 1168914 Problem Is
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...

Thu, 04/14/2011 - 12:13 | 1169044 Confused
Confused's picture

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

Thu, 04/14/2011 - 12:21 | 1169073 hedgeless_horseman
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

Thu, 04/14/2011 - 11:36 | 1168901 anolmec
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"

 

 

Thu, 04/14/2011 - 11:55 | 1168903 Sancho Ponzi
Sancho Ponzi's picture

 

Ahhh, now it's time for capital controls.

STRAUSS-KAHN ON CAPITAL CONTROLS

"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."

Well, there you go.

 

 

Thu, 04/14/2011 - 12:04 | 1169004 Bicycle Repairman
Bicycle Repairman's picture

What do capital controls imply, in your opinion?

Thu, 04/14/2011 - 12:13 | 1169046 NotApplicable
NotApplicable's picture

F A S C I S M

Thu, 04/14/2011 - 12:57 | 1169234 Sancho Ponzi
Sancho Ponzi's picture

I'll give you a couple of examples:

Brazil could control capital inflows by limiting foreign investment.

The USA could control capital outflows by not allowing its citizens and/or businesses to transfer or move currency and precious metals to other countries.

Thu, 04/14/2011 - 13:15 | 1169310 Bicycle Repairman
Bicycle Repairman's picture

How does that help the IMF?

Thu, 04/14/2011 - 13:43 | 1169427 Calculated_Risk
Calculated_Risk's picture

My guess would be keeping us and or others from making a play outside the imf globalist group. For example, (if I recall correctly).. the IMF etc. don't like the Chinese, if the Chinese were to make a play for reserve currency, and we flocked to it as asafe haven as the usd goes into a black hole. Then the IMF would try to block currency flows to non- member nations.. thus keeping the "U.S." as a dominant player.

This would make IMF look like the hero as they "saved" us from the evil Chinese, thus setting up a power play to control us more.

P.S. Pure speculation on my part. Just throwing out a plausible scenario.

Sat, 04/16/2011 - 06:56 | 1175522 Bicycle Repairman
Bicycle Repairman's picture

Thanks.  Since this sort of thing is "secret" we are left to speculate.

Thu, 04/14/2011 - 13:57 | 1169490 Sancho Ponzi
Sancho Ponzi's picture

Think of the IMF as the world's collection agency. Say Portugal wants to default. If that happens, lots of foreign countries, banks and other bondholders would be taking haircuts.

Now let's say the wealthiest 2% in Portugal hold 50% of the country's wealth, with much of that wealth consisting of stocks, bonds, cash, precious metals, etc.

If there are no controls on outgoing capital, much of the country's wealth would exit Portugal and find its way to Switzerland and other safe havens - a scenario that already played out in Greece. Haircuts would become more severe as there's less capital left to divvy up when it comes time to settle with the bondholders.

The IMF is funded by the big boys, so it's their job to do everything in their power to limit haircuts to the world's fatcats. By implementing capital controls, the IMF has virtually unlimited tools with which to recover capital. Once again, think collection agency. 

Thu, 04/14/2011 - 14:27 | 1169634 Calculated_Risk
Calculated_Risk's picture

Like the IRS on roids? hehe wait that's not funny! =/

Thu, 04/14/2011 - 15:42 | 1169944 TeresaE
TeresaE's picture

@Sancho, wonderful and insightful comments.

 

But only partially true.  Will be 100% true for us little guys, American small business, homeowners and the like.  For the big boys it won't matter, they already have their wealth split amongst countries and mainly outside the tax hands of the US.

 

The rest of us will have no safe haven, and will be stuck (again) picking up the tab.

Sat, 04/16/2011 - 06:58 | 1175523 Bicycle Repairman
Bicycle Repairman's picture

So there is also a window of opportunity that is closing.  Closed?

And what appears to be a haven now might change.  See Panama.

Sat, 04/16/2011 - 06:55 | 1175520 Bicycle Repairman
Bicycle Repairman's picture

Thanks, Sancho.  I wonder how many safe havens there are left.  Switzerland has reduced the protection it offers.

Thu, 04/14/2011 - 11:39 | 1168904 Problem Is
Problem Is's picture

TeflonTurboTaxTim Geithner
Amerikans appear dumber every time The Jeethner, aka Wanker Timmay, shows up to speak on our behalf...

Thu, 04/14/2011 - 12:05 | 1169010 Ransom
Ransom's picture

I used to hold a stereotype about Western Europeans ("Europeons", it went), whom I considered to be, essentially, vassals in what amounts to a financial-feudal state.

Now I realize we (Americans) are right there with them.

FML

Thu, 04/14/2011 - 13:59 | 1169509 Moe Howard
Moe Howard's picture

We just haven't accepted it as a status that makes us "superior" to others, yet.

Sat, 04/16/2011 - 06:57 | 1175524 Bicycle Repairman
Bicycle Repairman's picture

We will have much to learn from Europeans and South Americans.

Thu, 04/14/2011 - 11:40 | 1168905 DispenzPez
DispenzPez's picture

"Executive Statements"

Thought this a Politburo reprint where the names are changed to protect the guilty.

Thu, 04/14/2011 - 11:40 | 1168910 tahoebumsmith
tahoebumsmith's picture

Yo Timmay.. Talk to me on Monday evening when you realize the anticipated tax revenues come up 100's of billions short of your projections. I would love to be a fly on the wall as you stare at that computer and hit the refresh key over and over and over again.....

Thu, 04/14/2011 - 11:43 | 1168911 ebworthen
ebworthen's picture

TurboTax Timmy telling us it would be irresponsible to not go further into debt and further debauch the currency (?).

Does this mean I should max out my credit card and not pay my mortgage? 'Cause that's what it sounds like.

Thu, 04/14/2011 - 11:42 | 1168918 DispenzPez
DispenzPez's picture

.

!

+1

Thu, 04/14/2011 - 12:07 | 1169025 Bicycle Repairman
Bicycle Repairman's picture

"Does this mean I should max out my credit card and not pay my mortgage? 'Cause that's what it sounds like."

No, because you can't print money.

BTW, I believe that all debts incurred, including mortgage debt incurred by "jingle mailers", will be persued at some point in the future.

Thu, 04/14/2011 - 12:37 | 1169151 MachoMan
MachoMan's picture

If the state is in the business of making a guaranty on everything, then the state will end up pursuing all debt...  either directly or by proxy.

Thu, 04/14/2011 - 12:50 | 1169209 Bicycle Repairman
Bicycle Repairman's picture

"either directly or by proxy."

There will be plenty of jobs from the "by proxy" aspect of this.

And TV shows as well: "Dog Jr.: Debt Hunter", "Law, Order and Collection", "The Reposessed", "How I Juiced Your Mother", "Two and a Half Repo Men", "Remember that Underwater Mortgage?"

Thu, 04/14/2011 - 13:19 | 1169324 66Sexy
66Sexy's picture

how about "Shot Dead Collector"

Thu, 04/14/2011 - 15:32 | 1169898 MachoMan
MachoMan's picture

A lot of talk in this department...  not much follow through.

Sat, 04/16/2011 - 06:59 | 1175525 Bicycle Repairman
Bicycle Repairman's picture

That might be a movie, but on TV, no challenging authority.

Thu, 04/14/2011 - 15:38 | 1169924 TeresaE
TeresaE's picture

+1040V

 

Thu, 04/14/2011 - 12:08 | 1169029 Ransom
Ransom's picture

Make sure it's a JPMC card and you max it out on physical silver.

Thu, 04/14/2011 - 11:40 | 1168913 jmac2013
jmac2013's picture

Summary-  we'll continue to flood the world with debt until we can foreclose on every valuable revenue generating asset and then force our undemocratic austerity measures on the ignorant masses.

Thu, 04/14/2011 - 12:04 | 1169006 Vendetta
Vendetta's picture

exactly what these sociopaths are saying

Thu, 04/14/2011 - 12:12 | 1169040 Bicycle Repairman
Bicycle Repairman's picture

That's right.  So what collateral has the USA offered to the holders of USA debt?  If the USA defaults the debtholders are going to want the collateral.

Thu, 04/14/2011 - 13:25 | 1169357 Sancho Ponzi
Sancho Ponzi's picture

Let's hope it doesn't come to that, but if it does...

We owe China about $1.15 trillion, so they get Kalifornia.

We owe Japan $885 billion, so they can have Hawaii.

The Middle East and Brazil get our gold (if there's any)

The UK and US call it even.

Russia can have Alaska, and Taiwan can have Oregon.

That would leave about $1.6 trillion owed to other countries. We could re-issue bonds demoninated in the new currency or tell them to stick it. Nobody that far down has a military that is much of a threat.

Or we could roll the dice and tell everyone to stick it.

Thu, 04/14/2011 - 15:38 | 1169927 Things that go bump
Things that go bump's picture

So right after they take possession of the entire West Coast, the Cascadia fault lets go with the big one and it all slips into the sea?

Thu, 04/14/2011 - 17:42 | 1170473 mkkby
mkkby's picture

They wouldn't be stupid enough to take Kali because it would take another $5 trillion to fix its problems.

Thu, 04/14/2011 - 11:46 | 1168925 falak pema
falak pema's picture

The reality defies fiction. So the field is wide open to all types of hyper inflationary ideas like 'inclusive growth'. How do you have inclusive growth in USA when entitlements are dying and real labor force unemployment is at 20%+?  Does he shit it from the IMF ass?

As for the famous 'tool box' at the disposal of IMF : it is the usual 'tool box' of the people pay and the oligarchy collects. No change there. The hyper-rich refuse to pay taxes in Greece and show their two finger salute to the EU! As long as there is monetary war and no introduction of gold pegged fiat monetary standard, there will never be a yardstick to stem the inflationary cycle. The IMF knows it and peddles this 'duck soup' for sick plebians. Its always been part of the problem not the solution.

Thu, 04/14/2011 - 11:52 | 1168947 Duuude
Duuude's picture

Ahhh...Duck soup...

 

Blame it on the left handed moth...

Thu, 04/14/2011 - 12:14 | 1169055 Ransom
Ransom's picture

IKR

The sum unbacked government debt among N.A. and Eur. is astronomical and these charlatans are worried about inclusive growth?  

GMAFB

I'd come up with a metaphor for it if I weren't so upset.  Anyone else?

Thu, 04/14/2011 - 12:35 | 1169142 lookma
lookma's picture

As long as there is monetary war and no introduction of gold pegged fiat monetary standard, there will never be a yardstick to stem the inflationary cycle.

FA Hayek, from "Choice in Currency: A Way to Stop Inflation"

There could be no more effective check against the abuse of money by the government than if people were free to refuse any money they distrusted and to prefer money in which they had confidence. Nor could there be a stronger inducement to governments to ensure the stability of their money than the knowledge that, so long as they kept the supply below the demand for it, that demand would tend to grow. Therefore, let us deprive governments (or their monetary authorities) of all power to protect their money against competition: if they can no longer conceal that their money is becoming bad, they will have to restrict the issue.

http://mises.org/resources.aspx?Id=3983&html=1#4

And now, some 36 years after Hayek's comments, we see the unfolding of the "market" reaction to this uncorrected systemic monetary flaw - that savings held WITHIN the currency system as the flipside of someone's debt don't store value too good -- the emergence of demand for a store of value outside our currency system.  If you will, a "A private money for trade and savings that's outside the 'contract / debt' system," ala http://fofoa.blogspot.com/2010/07/debtors-v-savers-ii-foa-retro-house-mi...

 

The market evolves; you may be able to steer a bit in the short term, but not over the long haul. 

Thu, 04/14/2011 - 11:47 | 1168930 youngman
youngman's picture

These people know deep down we are screwed...they know it yet they can make statements like this.....I can´t lie that well...Swiss Banks accounts are being opened by the millions from these people....safe havens for their families..

Thu, 04/14/2011 - 11:52 | 1168950 NOTW777
NOTW777's picture

its april 14, has timmy finished his turbo taxes

Thu, 04/14/2011 - 11:51 | 1168954 SheepDog-One
SheepDog-One's picture

I cant tell, is this real or is it an Onion piece? Or does it even matter anymore?

Thu, 04/14/2011 - 11:51 | 1168955 RobotTrader
RobotTrader's picture

If anything bad happens, they will just print more electronic digits, monetize some securities, or nationalized entire industries.

After all, look how wildly successful it was, skying the SPY by 100% in 2 years, and creating untold new wealth for the holders of CMB, BIDU, TZOO, etc.

What's to stop them from doing it again after such a resounding success?

Thu, 04/14/2011 - 11:55 | 1168975 SheepDog-One
SheepDog-One's picture

Zero wealth is there, cash in to find its a washout or loss in purchasing power. But guess what Robo! You STILL get tax billed for the 50% 'cap gains'!! 

AHHHH HA HA HA HAAAAAA HA HA HA HAAAAAAAAA!!!!

Thu, 04/14/2011 - 12:07 | 1169008 tahoebumsmith
tahoebumsmith's picture

This is exactly right Sheep...Something people don't talk about much... Riddle me this? How can the government bail out the economy with taxpayer dollars and make a 40+% profit while doing so? It's called Capital gains.

Thu, 04/14/2011 - 11:53 | 1168957 bankonzhongguo
bankonzhongguo's picture

These money worshipers want the extra-territorial IMF to be the new buyer of UST via the XDR.  They will slip it into the national currency, just like the "Liberty Dollar" only without the prosecution.  They want the Fed to order the Treasury to issues bonds that will be sold to another player.  The Fed can't order "austerity," the IMF can if it replaces China's historical role.  The poor, sick and aged are going to be dying in the streets, all under the wicked eye of Obama and the beasts that propelled him (it) into office.  They want the debt ceiling to be a crisis (because they created it with all these bailouts and wars), so they can run to a jurisdiction with NO laws and continue to play puppeteer with the small people.  Maybe by the time Americans load their muskets they will feel like the huddled villagers they so eagerly bombed and indentures these last 50 years.

The tea party yahoos need to hold fast to bring an end to the wars and the Corporate welfare and not raise the debt ceiling.

 

Thu, 04/14/2011 - 11:53 | 1168959 Silverado
Silverado's picture

What "is" irresponsible is that we (right down to you and me) have allowed the treasury of this country to become beholden to a world organization that has no respect for this country's constitution. 

Thu, 04/14/2011 - 11:55 | 1168965 digalert
digalert's picture

Funny, 2010 they told me they saved us from the brink?

Thu, 04/14/2011 - 12:10 | 1169028 Vendetta
Vendetta's picture

Its funny anyone believed them, then or now

Thu, 04/14/2011 - 11:53 | 1168968 RobotTrader
RobotTrader's picture

All I can say is as long as the XRT and the IYR are less than $2 from their highs, there is nothing to be worried about.

Thu, 04/14/2011 - 11:58 | 1168979 SheepDog-One
SheepDog-One's picture

Shoulda been holding gold and silver, idiot! You paper stock runup is a WASH in purchasing power....but guess what youre still gonna get nailed for a 50% cap gains on it anyway!! HA HA bend over Catfishmouth!

Thu, 04/14/2011 - 12:39 | 1169177 MachoMan
MachoMan's picture

So you're not going to be taxed on your gain on a PM investment?

Thu, 04/14/2011 - 12:53 | 1169223 SheepDog-One
SheepDog-One's picture

What PM gain? Says who?

Thu, 04/14/2011 - 15:33 | 1169909 MachoMan
MachoMan's picture

At some point there is going to be a paper trail when you go to exchange for anything of value...  I guess you could trade it for a horse...  or some deer meat or something...  but for those folks hoping to hit a home run by trading for real property, cars, etc., there's going to be records of ownership... 

Once the paper trail starts, you're guilty until proven innocent in tax court...  If you can provide a basis for your purchases, cool...  but I presume that you don't operate in a 100% cash environment and deposit your FRNs in a financial institution...

Thu, 04/14/2011 - 11:56 | 1168978 Still Life Living
Still Life Living's picture

Geithner thinks he can lie his way out of this.  It doesn't work in marriage, it doesn't work in (non-subsidized) business, and it is beginning to not work in politics.  As a nation, we are all becoming Detroit. 

Thu, 04/14/2011 - 12:09 | 1169037 Vendetta
Vendetta's picture

Detroit is the poster child for what they plan for the US

Thu, 04/14/2011 - 15:33 | 1169910 TeresaE
TeresaE's picture

As someone whom sees a huge percentage of my income go to pay for Detroit (and no, I don't live there) thanks to our state's redistribution and federal contributions, thank you.

 

That is EXACTLY what they are doing.  Hell, Detroit voted for politicians (Levin, Conyers, to name a few)  that sit on committee, or head it, voting to spread their winning streaks nationwide.

Thanks again. But, just like in Detroit and Michigan, the sheep won't see it and they will relish their free stuff right up until the day it burns around them.

Thu, 04/14/2011 - 12:01 | 1168985 Caviar Emptor
Caviar Emptor's picture

Here's what they're facing this morning: Stalemate on all fronts. 

Low to no growth throughout developed economies, depression conditions for employment and housing, margin squeeze from inflation forces, cost of living rocketing, stalemate on how to deal with the debt accumulated as a consequence of their policies, anti-establishment revolutions popping up across the globe

 

 

Thu, 04/14/2011 - 12:04 | 1169001 topcallingtroll
topcallingtroll's picture

Welcome to the 70's

History is starting to rhyme.

Thu, 04/14/2011 - 12:22 | 1169087 Bicycle Repairman
Bicycle Repairman's picture

That's right.  The 1970s.  They've done this before.  We've lived it before.  People run around here like this is the end of the earth.  It isn't.  It is extremely painful and will last for a decade or more.  And they will do this without blinking.  Howl in pain all you want.  What are you crying about?  Your BMW is now a Chevy?  Your McMansion is now a split level ranch?  You have to work until 70?

They don't give a sh!t.

When everything has been reflated, they will declare "Morning in America", and 95% of America will believe it.

Thu, 04/14/2011 - 12:02 | 1168996 topcallingtroll
topcallingtroll's picture

"ANYTHING BEING DENIED IS ABOUT TO HIT US HEAD ON"

sadly likely to be true.

The russians used to say never believe in rumors until they are officially denied.

Thu, 04/14/2011 - 12:07 | 1169007 SuperRay
SuperRay's picture


"What "is" irresponsible is that we (right down to you and me) have allowed the treasury of this country to become beholden to a world organization that has no respect for this country's constitution." 

as opposed to who?

Thu, 04/14/2011 - 12:07 | 1169012 Jim in MN
Jim in MN's picture

So the Fed's balance sheet has cut the bond vigilantes' throats...while stuffing the pockets of the superelite with churn ching and freeing Congress and Obama to spend without restraint. The only cost is the destruction of real capitalism, middle class savings, asset valuation, democracy, America's ability to lead on issues of freedom/justice/security, and social order.

What's not to like?

Thu, 04/14/2011 - 12:36 | 1169156 Bicycle Repairman
Bicycle Repairman's picture

The top 1% have a priority list.  They start at the bottom and work up as circumstances warrant it.

"The only cost is the destruction of real capitalism, middle class savings, asset valuation, democracy, America's ability to lead on issues of freedom/justice/security, and social order."

All of these things have been jettisoned to protect higher order "goods."  One point on physical order: People will be allowed to soil their own playpens, but if they wander on to the turf of the top 1%, they'll be dealt with harshly.

My hope is that if better times return, there will be a restoration of some kind.


Thu, 04/14/2011 - 12:07 | 1169021 Global Hunter
Global Hunter's picture

 "Employment growth is increasing" says Timmy.  He doesn't have wi-fi or tv?

Thu, 04/14/2011 - 12:10 | 1169026 SuperRay
SuperRay's picture

we ain't got no constitution, we don't need no stinkin' constitution...

btw, "growth" is a sad relic of a bygone era, otherwise known as the age of oil.  no growth no more, just retrenching and figuring out how to live without it...

Thu, 04/14/2011 - 12:09 | 1169036 samseau
samseau's picture

""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."

 

In other words, sacrifice the youth without them revolting.

Thu, 04/14/2011 - 12:39 | 1169176 Bicycle Repairman
Bicycle Repairman's picture

"In other words, sacrifice the youth without them revolting."

That's what the military and Americorps are all about.  It gives the youth a chance to give back.

Thu, 04/14/2011 - 12:10 | 1169042 AldoHux_IV
AldoHux_IV's picture

Hey TD where's the 'warning label' for these excerpts?  I feel my bloodpressure rising.  It's painful to hear these hacks and fucktards talk endlessly about things they only know how to spin-- they do not understand economics nor the philosophy behind it.  An economy is meant to provide a framework whereby individuals within a society can benefit from the trade of goods and services that otherwise would not be so readily available to them-- a sort of mechanism to solve society's greater problems and necessities.  In a well functioning economy, prosperity can be infinite based on the potential of the human mind to innovate and produce.  However, we find ourselves in something entirely different from these very basic foundations.  The economy that we know is consumption based.  How can I get you to consume what I have to sell-- while this may seem logical nowadays it veers from the purpose entirely.  Instead of solving the problems of necessity and wants we now have consumers on the ever decreasing margin because prosperity has become imbalanced.  That's what happens when you have someone looking to benefit solely of the consumption of many.  Society's greater problems (the priority of which is debatable): basic necessities for everyone, opportunity for everyone to be able to provide for themselves and loved ones, energy needs, the sustainablity of basic necessities, etc. are growing without any solutions in sight (at least politcially).  Instead, policymakers are only concerned about one thing: how do we continue this flawed model so that we can get ours before this thing crashes in a blaze of hell and glory.

The system has become so skewed and fucked that the very belief in things like currency has now become questionable.  Another form of a flawed model, money is not debt and therefore can not be born of debt.  Yet in this system somehow we have become dependent upon this flawed model.  Like many other flawed systems and models we need to break our dependency upon them.  We need to really fix the inherent flaws and what are they?  People who have come to power through the means of the flawed system as they seek only to perpetuate an idea of economics that is false.  A false prophet will tell you that all is well in the world and the recovery is strong, but it is not.  We need to embrace the fact that we can control the destiny of humanity and that by taking control of our economy and steering it onto the right path we will be ever closer to sharing the promised prosperity of individual effort to help the greater sum.

 

 

Thu, 04/14/2011 - 12:16 | 1169059 lynnybee
lynnybee's picture

A criminal banking syndicate is taking over the UNITED STATES of AMERICA.   we are toast unless we revolt.

Thu, 04/14/2011 - 12:57 | 1169245 gall batter
gall batter's picture

lynnybee, not "is" but has taken over the U.S.  

Thu, 04/14/2011 - 14:02 | 1169518 Moe Howard
Moe Howard's picture

+1984

Thu, 04/14/2011 - 12:17 | 1169064 lieutenantjohnchard
lieutenantjohnchard's picture

i read these notes, watch the dxy trade lower to 74.68 and thank me lucky stars for the shiny stuff in the safe.

Thu, 04/14/2011 - 12:19 | 1169074 americanspirit
americanspirit's picture

Wonder what the IMF plans to do about Syria? They better get a lot of cash in there very quickly - if they liked Greece, Egypt, Libya and the Ivory Coast they're going to love Syria.

Thu, 04/14/2011 - 12:19 | 1169078 Yardfarmer
Yardfarmer's picture

 

What are the IMF'ers really up to in Africa?

"Le grande seducteur", as Strauss-Con(!) had been dubbed by the Parisian tabloids endlessly titillated by his numerous sexploits, was busy with consultations on behalf of the IMF with the "Two Elephant"power sharing coalition of president Mwai Kibaki and his former arch-rival and present premier Raila Odinga in Kenya. Louse-Con(!) was kicking off his third visit to the Mother Continent in just four months. The Two Elephants had engaged in a mutually vitriolic and contentious rivalry in the disputed December 27, 2007 presidential election , followed by an unprecedented outbreak of "tribal violence" which left thousands dead, 350,000 displaced refugees and a national catastrophe of once unimagined proportions in a country which had long held a reputation as an"oasis of peace in a troubled region".  read more http://kushmonster.blogspot.com/2010/03/imf-ghoul-crashes-nairobi-street-party.html

 

Thu, 04/14/2011 - 12:28 | 1169123 Yardfarmer
Yardfarmer's picture

and we shouldn't forget Kyrgyzstan either! http://kushmonster.blogspot.com/2010/04/image.html

Thu, 04/14/2011 - 12:25 | 1169103 Mike Cowan
Mike Cowan's picture

What I want to know: Is the ECB going to tighten? And when will they tighten? All the rest is vainity run amuck. Germany runs Europe!

Thu, 04/14/2011 - 12:24 | 1169109 Dreadker
Dreadker's picture

This is like watching a horse with broken legs...  Would someone just shoot it already?

Thu, 04/14/2011 - 13:28 | 1169384 I am Jobe
I am Jobe's picture

The more fucking education you get the less you are to think logically. Yeah all those academics, and thier stupid ideas.F em all I say. Shut down the U's and the banks.

Thu, 04/14/2011 - 13:34 | 1169412 Boxed Merlot
Boxed Merlot's picture

GEITHNER ON VOTE TO RAISE DEBT CEILING

"They understand that you can't take any risk the world starts to think the United States won't meet its obligations...It would be deeply irresponsible...

"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..."

 

Timmy's lordship over the department of treason has been exemplary.  His outright candor to his benefactors at the bis, imf and all but the sovereign citizenry of the US has been stellar. 

I would only add that in the long list of usurpations given by our forefathers in the the currently decaying declaration of independence, their note of these entities having... "combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his assent to their acts of pretended legislation:".. is spot on.

Thu, 04/14/2011 - 13:37 | 1169415 dark pools of soros
dark pools of soros's picture

what a rambling lunatic

Thu, 04/14/2011 - 13:55 | 1169486 Moe Howard
Moe Howard's picture

Ignore please.

Thu, 04/14/2011 - 15:26 | 1169877 MrBoompi
MrBoompi's picture

"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"
---
No, the important thing is recognizing both the POTUS and Congress are told what they can and can't do by others. We must have austerity so the wealthy can maintain their incomes and standard of living or else we'll be forced to suffer greatly. The United States is now the largest and most powerful entity ever to be taken hostage by the Powers of the world.

Thu, 04/14/2011 - 21:19 | 1170998 honestann
honestann's picture

To meet "its obligations" REQUIRES the predators-that-be to NOT increase the debt limit.  Hell, they can't afford to pay off the current debt, so their claims are 100% backwards... as they full well know already.  Pure spin.  Pure lies.  Pure BS.

Fri, 04/15/2011 - 00:04 | 1171383 PulauHantu29
PulauHantu29's picture

Yes, "deficits don't matter"...hey wait, I thought Chainsaw Cheney (a repugnican) said that! I guess Dems = Rep.

I added USO, GLD and more FCX and PALL today....QE3 is on the way very very soon.

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