IMF Announces Receipt Of Bail Out Request From Portugal: "First We Take Your Money Gringos..."

Tyler Durden's picture

Two weeks ago, we when we disclosed the most recent expansion in the IMF's funding with the announcement of the activation of a "Special Funding Pool" we predicted:  "Bottom line: there is a new threat to the international monetary system which means Europe May 2010 redux is imminent. US taxpayers: our condolences." Alas, as tends to happen in these cases, we were right. The IMF, whose number one source of funding is you, dear US taxpayer, has just received a bailout request from Portugal. 

From the IMF:

Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), issued the following statement today on Portugal:

“The IMF has received a request for financial assistance from the Portuguese authorities and we stand ready to join the effort, together with our European partners, to help restore growth and financial stability in Portugal.

We are prepared to move expeditiously on this request and hold swift discussions with the Portuguese government, together with the European Commission and the European Central Bank, on an economic program, supported by the main political parties, that could provide the basis for Fund financial assistance.

“We also welcome today’s statement from the Eurogroup and ECOFIN ministers indicating that preparations will start immediately to reach agreement on a program that will help Portugal meet the economic challenges it is facing.”

As a reminder, here's who foots the bill. Good luck getting a post catastrophe Japan to give money to the bail out fund.

Muito obrigado gringos.

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Yen Cross's picture

Then we take your cabeza!

bankrupt JPM buy silver's picture

Nothing to see here, its all a conspiracy...OWEbama told me change was coming, I'll be patient.

Ahmeexnal's picture

Does anyone here know that Mr. Strauss-Kahn is leading the polls for the elections in France?


And you still don't know who is to blame for America's financial woes???

With "friends" like France...who needs enemies!


Robert Neville's picture

Wonderful! The IMF is run by a French socialist.

Rodent Freikorps's picture

Isn't everything?

At least French-ish?

IQ 145's picture

 Yes, he feels a lot of compassion for poor people in poor countries who have already spent four times what they could possibly pay in the next eight years, so he just can't wait for a chance to pay all their bills for them. This is very easy for him, because he's going to use your money. The IMF is a disease.

GDE's picture

Don't trust this poll. We still wonder how they came to these results. Marine Le Pen is more popular than him and the socialists are not pleased at all by the guy.


The system wants Strauss-Kahn but they will have a hard time to convince the French to vote for a new Sarkozy. They'll probably rig the elections to make him win.

svoboda59's picture

They still remenber US default on their obligations

in the late 60s.

Bananamerican's picture

"First We Take Your Money Gringos..."

that's kind of a funny line to hear in mexifornia

iDealMeat's picture

Columbus..  You can have America back..  We fucked it all up..


Sudden Debt's picture

Sorry, no refunds. YOU TOUCH IT, YOU BUY IT!!


But we do swap things. I can give you 1 Greece and a Ireland for the state of New York and Spain for the state of California. You can keep the rest.



iDealMeat's picture

Done..  You do know that California does come w/ a $28B black hole that continues to suck in FRNs right??

Looking forward to visiting Barcelona again.. That place was pretty cool.


A Man without Qualities's picture

This was on the wires yesterday.  Since all nations are broke, the IMF wants to borrow directly from the markets.....   Smells like NWO to me...


UPDATE: IMF Wants Ability To Tap Financial Markets



(Adds report details, background)

WASHINGTON (AFP)--The International Monetary Fund has asked member nations to consider allowing it to borrow directly from financial markets in time of severe crisis, according to an document published Thursday.

"There may be circumstances where it is either necessary, or preferable on effectiveness grounds, to augment significantly the Fund's own resources," the IMF said in a report dated March 23.

"While in 2009-2010 it was possible to do so by turning to member countries, the process took time and may not always be politically feasible," it said.

Instead, establishing the means to borrow from the markets at short notice to supplement its existing resources "could be worth exploring," it said.

The publication of the report came one day after Portugal, struggling with a debt crisis, said it would seek aid from the European Union. On Thursday, Portugal still hadn't approached the IMF for assistance.

In the middle of the global financial crisis in 2009 the IMF sought to triple its resources to broaden lending capacity.

While it was able to garner pledges from the Group of 20 major economies, it only managed to meet that goal in March this year.

The "usable resources" of the crisis lending account for medium and high-income countries today totals $671 billion, the highest level since the IMF was founded more than 60 years ago.

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

April 07, 2011 16:54 ET (20:54 GMT)

oogs66's picture

I saw this, I think they are scared the U.S. won't give them money when they ask for it so they want to prefund based on promises from the governments.  Actually I think the U.S. and some bankers told them to do this so that we don't have to face the issue directly and the bankers can collect some additional placement fees.  So EFSF and IMF borrow money to save the sovereigns that support them.  I bought Animal Farm and 1984 to read this weekend.  Can't decide which to read first. 

justanotherday's picture

Both. Also read "Politics and the English Language." Tyranny begins with changing the meaning of words to change(disrupt) thought, logic and reason.

PulauHantu29's picture


Just think of the Fat Commissions the Underwriters will get...of course Wall Street Banks recommended this vehicle....think Profits....Bonuses....Fat Stuff a la the Broken Down Donkeys (Middle Class Taxpayers). It makes "doing God's work" a hell of a lot more fun!

"Why steal Less, when you can steal More."

Wall Street Mantra

nobusiness's picture

Congress cant find 6 Billion to cut, but billions to the IMF no problem.

Yen Cross's picture

Hell, they can't even launch a space shuttle!

Sudden Debt's picture


Just invade Germany and take home the smart guys and maybe they can build you a new one?

And if that doesn't fly, just rent some from the russians. I've heard they give you a sweat deal on the gas usage if you rent 5 rockets.


Yen Cross's picture

Rocket rentals. That sounds like a new extreme sport. I need 12 of them. Hint Hint!

NidStyles's picture

Hmm, 12 rockets, 12 Federal Reserve suppositories.

Yen Cross's picture

Repositories/Suppositories LMAO GOOD ONE!

Sudden Debt's picture

Haven't you ever heard the saying:



I think it's written on the statue of liberty or something...


AldoHux_IV's picture

Time to stop funding this terrorist organization of economic hacks and morons-- talk about the epitome of centrally planned bullshit.

slow_roast's picture

Can I get citizenship in exchange?  They might be better off in 10 years since they know how to live poorly in Portugal; it was only ~10 years ago.  Lovely country with lovely people.  I'd move there.

Sudden Debt's picture

Just send 50$ to Obama via Western Union and you'll get your card.

He's Nigerian so you can trust him!


IQ 145's picture

 Whoa, you're up on the cam today; I think he's a Kenyan, but they all look the same to me.

TheGreatPonzi's picture

Question: why would seemingly libertarian States like Hong Kong or Singapore engage in the bailout farce? 

Put in other words, what does a State earn when he participates to the IMF?

Sudden Debt's picture

They get these real cool membership badges which help you to score with the kinky chicks at Hooters ;)



strenue's picture

Um. Singapore is not libertarian. Try and buy a car there. Or spit on the sidewalk. No liberty.

PulauHantu29's picture

Participation in the IMF earns you a right to enter the "Win the Medal of Freedom" badge.

Clueless Economist's picture

I advocate $4 Trillion in additional stimulus to pay for shovel ready jobs and the bailout of Portugal.

long juan silver's picture

The Queen Elizabeth's Foundation United Kingdom, is glad to notify you. Based on the random selection exercise of Internet websites and millions of supermarket cash invoices worldwide, you were selected among the lucky recipients by the board of trustees as one of the final recipients of a cash Grant/Donation of £1,000,000.00 pounds ( One million Ponds) for your own personal,educational, and business development.

The Queen Elizabeth's Foundation, established 1977 by the Queen Of England (Queen ElizabethII) and now supported by the Economic Community for West African States (ECOWAS), United Nations Organization (UNO) and the European Union (EU) was conceived with the objective of human growth, education community development. Please endeavor to quote your Qualification numbers (Q7-67-3447,EU-922-56) in all correspondence.
Claims Requirements: 1.full Name, 2.Address, 3.Telephone, 4.Occupation.
Executive Secretary
EvlTheCat's picture

So you are the SOB who keeps sending that to me!

oogs66's picture

Does this not count under the debt ceiling?  Does the average American have any clue that while we are about to shut down our government, we are funding a government that already rejected austerity measures?  

This seems beyond bizarre!

DonutBoy's picture

Calm down oogs66.  These aren't the droids you're looking for.  Move along.

Dabale arroz a la zorra el abad's picture

Don't worry, you are not alone. Spain, not knowing what to do do with its infinite wealth, has decided to generously contribute with 5 billion euros.

IQ 145's picture

 There's an old spanish expression that "God is merciful to fools"; I hope it's true.

pirea's picture

"The IMF, whose number one source of funding is you, dear US taxpayer, has just received a bailout request from Portugal."

They are fictional money not US Taxpayer.

It is a long time since taxpayer money means nothing, 1971.

falak pema's picture

what is this denominated in $, K$, M$ ?????? what time frame does this cover?

magpie's picture

SDR bonds ? Yuan backed by REIT ? AUD ? Carbon credits/short uranium ?

Cognitive Dissonance's picture

Will they take MasterCard?

bania's picture

who's using mastercard anymore?!?!

Long-John-Silver's picture

I thought it was McMasterCard now. You can have a burger and fries with it.

1fortheroad's picture

I use the Maestro card and it really is priceless.

ebworthen's picture


Now we know why the Republicrats and Demicans are arguing over $30 billion of "austerity" and cutting already taxed entitlements such as S.S. and Medicare; the banking oligarchy demands tribute.