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IMF Announces Receipt Of Bail Out Request From Portugal: "First We Take Your Money Gringos..."
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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Then we take your cabeza!
Nothing to see here, its all a conspiracy...OWEbama told me change was coming, I'll be patient.
www.silvergoldsilver.blogspot.com
Does anyone here know that Mr. Strauss-Kahn is leading the polls for the elections in France?
http://www.bloomberg.com/news/2011-01-20/strauss-kahn-would-beat-sarkozy...
http://www.bloomberg.com/news/2011-03-16/strauss-kahn-le-pen-might-defea...
And you still don't know who is to blame for America's financial woes???
With "friends" like France...who needs enemies!
Wonderful! The IMF is run by a French socialist.
Isn't everything?
At least French-ish?
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.
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.
They still remenber US default on their obligations
in the late 60s.
"First We Take Your Money Gringos..."
that's kind of a funny line to hear in mexifornia
Columbus.. You can have America back.. We fucked it all up..
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.
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.
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: http://www.djnewsplus.com/access/al?rnd=YYixk5ISoNPbF4%2BfC9WGEQ%3D%3D. 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)
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.
http://www.youtube.com/watch?v=6MKXgrF9IRc
1984
Both. Also read "Politics and the English Language." Tyranny begins with changing the meaning of words to change(disrupt) thought, logic and reason.
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
Congress cant find 6 Billion to cut, but billions to the IMF no problem.
Hell, they can't even launch a space shuttle!
SURE THEY CAN!!!
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.
Rocket rentals. That sounds like a new extreme sport. I need 12 of them. Hint Hint!
Hmm, 12 rockets, 12 Federal Reserve suppositories.
Repositories/Suppositories LMAO GOOD ONE!
Haven't you ever heard the saying:
IT'S BETTER TO GIVE IT ALL AWAY TO SOMEBODY YOU DON'T KNOW, THEN TO PAY YOUR OWN BILLS?
I think it's written on the statue of liberty or something...
Time to stop funding this terrorist organization of economic hacks and morons-- talk about the epitome of centrally planned bullshit.
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.
Just send 50$ to Obama via Western Union and you'll get your card.
He's Nigerian so you can trust him!
Whoa, you're up on the cam today; I think he's a Kenyan, but they all look the same to me.
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?
They get these real cool membership badges which help you to score with the kinky chicks at Hooters ;)
Um. Singapore is not libertarian. Try and buy a car there. Or spit on the sidewalk. No liberty.
Participation in the IMF earns you a right to enter the "Win the Medal of Freedom" badge.
I advocate $4 Trillion in additional stimulus to pay for shovel ready jobs and the bailout of Portugal.
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.
SEND ALL YOUR CLAIMS AND INQUIRIES TO THE Executive Secretary Email:seanconelly@hotmail.com
So you are the SOB who keeps sending that to me!
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!
Calm down oogs66. These aren't the droids you're looking for. Move along.
Exactly!
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.
There's an old spanish expression that "God is merciful to fools"; I hope it's true.
"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.
what is this denominated in $, K$, M$ ?????? what time frame does this cover?
SDR bonds ? Yuan backed by REIT ? AUD ? Carbon credits/short uranium ?
Will they take MasterCard?
who's using mastercard anymore?!?!
His internet cafe
I thought it was McMasterCard now. You can have a burger and fries with it.
I use the Maestro card and it really is priceless.
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.
Have no fear my friend, Congress reassured the American people that during a government shutdown essential services would still be provided to Libya, Afghanistan and Iraq, Portugal and the IMF.
Another country falls to the New World Order. Buying up countries with money printed out of fresh air backed by nothing by an entity (the IMF) that is controlled by a handful of wealthy families...
... who would have thought it would be so easy to control the world.
I find the lack of resistance by the people most disturbing.
Please post the names and addresses of the perpetrators and we can begin the resistance.
You can pick up where Susanna Maiolo left off.
The high sov yields on the European periphery is I believe a grossly irresponsible mechanism to hold down the Gold price by persuading various actors to buy high yielding paper rather then Gold and thus effecting a effecient money supply - although in such a scenario you would expect the US/IMF to want higher interest rates rather then the ECB / BIS matrix.
The situation is intensely confusing.
I am obviously missing something here.
Gold doesn't pay a coupon.
"Eureka! I think you got it Holmes."
It's a stupid tax. ... Here's your sign...
Well, it's all bullshit anyway you look at it. It certainly isn't going to be paid back by anyone, much less the U.S. taxpayer.
The FED, ECB, et al are just using the tools at their disposal to keep yet one more ball in the air. At some predetermined time all the jugglers will exchange a wink and a nod then stick their hands in their pockets. It'll be a crash to behold. This monetary system won't see 2014, maybe not even 2012. Good luck to all in their preps!
Yes but who will perform the clearing mechanism - the BIS I suspect, as FOFOA tells us.
Christ, global trade will rebalance dramatically.
Does that include Tyler? If so, Please correct to we, Dear taxpayers. Thanks. Rally on
We don't need no stinking bailout! You know, a few extra bucks for the weekend would be nice, OK bail me.
Looking more like Spain may not even make it 90 days...
http://goldandsilverlinings.com/?p=530
Dear DSK - I will gladly pay you TUESDAY for a BAILOUT today - Portugal
This is good right?
Americans like redistributing their wealth. In fact didn't they vote for a leader on that sole premise?
...Obama's gona' pay for my mortgage, pay for my gas
First give up all the young girls (just the pretty ones) and the gold... Oh yes ALL the gold (all of it bitches - ever last Escudo!), and the silver too!
Bwahhh ha ha ha. Now, all the men bend over and grab your ankles!
"we are prepared to move expeditiously" They're not even gonna use lube!
Don't be complaining about the US as the source of funding - time to accelerate the dollar's demise and get the current dollar charade over with and move to the next currency.
In ZH speak: Spain, bring it on biaatches!
I want to see what the market sees; I need to know why "everything's going to be ok." What am I missing?
Portugal's 10-year stands at 8.58 after surging from 7.3 only a couple weeks ago; 6-month bills are at 6.5% and CDS are still at their highest level, i.e., its locked out of the market; Portugal was said to have about €4 billion cash, plus about €1 billion more from selling 6 and 12 month bills at rates higher than 10 yr. bunds; Portugal has bond redemptions and coupon payments totalling €5.3 billion this month, plus its normal monthly fiscal deficit. 1) Where is the money coming from to get through April?
Ok, assume April's bonds and deficit are paid for, and Portugal has enough cash on hand to cover its fiscal deficits from here to June. The only way to get though June's bond redemptions and coupon payments, totalling €7 billion, is with a bailout. The various "donors" still have to assess the situation, and if Ireland is a guide, the terms that would be given wouldn't be issued until the end of May. But given to who? 2) The "lame duck" parliament in Portugal does not have the legal authority to accept any bailout terms.
So that leaves everyone waiting until after June 5. For fun, lets assume that a government is able to be formed within a day of the election. That leaves 9 days with which to accept an austerity package. Consider the recent election losses by CDU in Germany and next week's Finnish elections in assessing the contents of a package; an austerity package already rejected in March (ostensibly due to tax increases - without those, they would need further spending cuts, but is that politically possible?) is being labeled merely as a starting point in the budget reforms Portugal needs to enact to get bailout funds, with the Finnish Finance Minister stating, “The package must be really strict because otherwise it doesn’t make any sense...The package must be harder and more comprehensive than the one the parliament voted against.” 3) Is it possible to expect the new parliament to negotiate, debate and implement a controversial austerity package in less than 9 days, let alone at all?
That leads to my last question: 4) Could there be any funding of Portugal without strings attached through June? This begs the question, by whom? ECB? That may be a way of providing liquidity while raising rates (not sure about the mechanics of that one). China? They play realpolitik, so the question is, in exchange for what?
To recap, in order to justify the market's "they'll take care of it" view:
1) Portugal must have enough to cover this month's bond redemptions and coupon payments, as well as enough to cover fiscal deficits through June.
2) The June 5 elections take place and a government is formed quickly.
3) The new parliament is willing to implement an austerity plan stricter than one already rejected with little negotiation.
Laws?
Rules?
We've done away with those.
Money is nothing but binary data in the database that can be created with some keystrokes - nothing has to be there.
Who says they have no money? All they need is a couple of accountants proficient at adding zeros to spreadhseets.
Who is going to stop them?
"Alas, as tends to happen in these cases, we were right."
Which is why ZH is my primary news source. Almost everything else is a waste of time.
IMF same exact four-step program.
1.0 Privatization 'Briberization.'
2.0 IMF/World Bank capital market deregulation allows investment capital to flow in and out the "Hot Money" cycle.
3.0 Market-Based Pricing, a fancy term for raising prices on food, water and cooking gas
3.5 IMF and World Bank call their "poverty reduction strategy": Free Trade- "The IMF riot."
http://www.gregpalast.com/the-globalizer-who-came-in-from-the-cold/
Just BTFPB!! (Buy The Fuckin Pointy Boots)
http://dynamichedge.com/2011/04/06/trend-watch-super-pointy-boots/
Okay, that is scary.
Yack! Now put a mirror on top and you can economize on porn.
dupe
Portugal does have a niche export category ( boudoir apparel supermodeling, courtesy of Claudia Vieira ) which could alleviate the current state of fiscal distress...
http://1.bp.blogspot.com/-mu7Zuirifys/TVpIGyARn8I/AAAAAAAABzA/6Z_xyfgsXS...
/ES
Update.
http://www.zerohedge.com/forum/99er-charts-0
Damnit Jim, Im a doctor, Not a Taxpayer!!
"Im not really a taxpayer, I just play one on TV".
Nenhum Agradece
Eu nenhum desejo mais longo participar.
Fiança Cadelas!
Took me a bit to figure out. That is a harsh phrase!
and look at that... the EUR is up...
Maybe we need a crisis in the US dollar and it will rally?
we should just go to war with those guys
.
for sticking it to our corporate taxpayer overlords
I see insolvent countries.
As long as the IMF gives them the harsh "asian cure" then I don't mind us being part of the funding. Being on the receiving end of IMF deflationary requirements is no joke. The Portoguese government couldn't chop off their own legs and gouge their own eyes out. They had to get an outsider to do it, so the politicians can blame the IMF. The IMF is the organization desperate politicians love to hate. They can claim the IMF is causing all the suffering.
Those nasty southern europeans need to suffer. I have never seen a lazier, live-for-the-day, irresponsible group of people than the spanish and portuguese. They probably aren't intellectual socialists. The common iberian peninsula person supports socialism as a way to get something for nothing.
Now it is all going to crash and the IMF will be a cruel master. The crueler the better.
No faster way to rationalize your self-esteem than to marginalize someone like you.
I have never seen a lazier, live-for-the-day, irresponsible group of people than the spanish and portuguese.
You have obviously never been to southern Italy.
Chris: Fed Discount dump, HSH Pornbank, JP Morgan Vault scam - Vid http://youtu.be/YZO9JKIdKok
Yeah, rich Americans will have to bail out Portugal, that's fascinating.
More importantly, did you guys hear Pia got kicked off American Idol?! I call bullshit. Guys, I'm seriously.
Randy shook his head in disbelief.
Ryan said this is why you can't assume your favorite is "safe" and that you MUST call in your votes.
Reminded me of a debt crisis, central banks, bankers, and governments chastising their taxpayers for not preventing the debt crisis - and to send in more taxes more often.
In exchange for however many Bernanke Bucks the IMF wants, the IMF gives the US Government all the gold it hasn't sold yet.
The US taxpayer will accept the higher than market price in exchange for the large transaction volume.
If the gold fails re-assaying the deal is off.
Now the US Taxpayers just need to find some place in plain sight to store the gold and some trusted bodies of the US Government to watch the gold. Damn, we are screwed.
As pessoas em Portugal falam portugese idiota!
Just look at what Tyler posted. Yes, under NEW MEMBERS we have... Ireland, Greece, Portugal.
So don't worry: it's all designed to be self healing - US will be bailed out by PIIGS (after their economies recover) when needed.
Portugal exports sardine. They're going to send us lots of little cans of sardines; then we can all sit down in a circle and sing cumbayah, and pass the pipe of peace. It'll be fine.
WTF? Lay off those radioactive sardines. It's club med and the domino effect you moron!PiiGs!
Our committment is a dollar committment. See now why the Bernanke is relentlessly trashing it.
all your gringos are belong to us.
First wee take your money. then wee take your weemen. then we take your jobs (oh wait did that already!) then we move in and take over your land! F these lazy Spaniards and Portuguese, we don't need them!
www.forecastfortomorrow.com
Doesn't Portugal have over 350 tons of gold? Isn't this maybe the end game, bankrupt them tand take their gold in exchange, leaving them with fiat paper?
Who are these Portuguese authorities betraying their country? Their government was voted out. There should presently be no one authorized to make any requests.
I for one welcome Portugal's new overlords and masters.
"Gringos" is Spanish, you dick! In Portugal they speak... PORTUGUESE!
Sensi'vel do penis to you.
Shutdown the government for as long as it takes to pay for this nonsense. Hopefully until 2012.
Meanwhile, savers get crucified.
I knew it ... this is why the Euro goes up while the dollar goes down. Bernanke, IMF, and Federal Reserve apologist's are all the same anti-american globalist's who are dead set on creating a new world. If you are still in disbelief this should help clear things up for you.
Didn't the Portugese people just tell the gov't to tell the EU to take a haircut?
This is nuts, it does not seem to matter what people say they are not going to lose one dime in principle, no matter what.
It's going to have to be a huge taxpayer revolt
Iberians are generally lazy compared to us, I for one am not a fan of this. Let's leave them alone to dwindle away and only help once they're begging. I don't see why we should pay taxes for their siestas.
www.forecastfortomorrow.com
When the hammer comes down, it's going to hurt and hurt badly.
Yes, yes yes...but will the IMF finance The Royal Wedding?
Why do I have the urge to listen to Freddy Fender?... Wasted days and wasted nights.