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IMF Eliminates Borrowing Cap On Rescue Facility In Anticipation Of Europe Crisis 2.0; US Prepares To Print Fresh Trillions In "Rescue" Linen
Back in April, when we discussed the inception of the IMF's then brand new New Arrangement to Borrow (NAB) $500 billion credit facility, we asked rhetorically, "If the IMF believes that over half a trillion in short-term funding is needed imminently, is all hell about to break loose." A month later the question was answered, as Greece lay smoldering in the ashes of insolvency, and the developed world was on the hook for almost a trillion bucks to make sure the tattered eurozone remained in one piece (leading to such grotesque abortions as Ireland, whose cost of debt is approaching 6%, funding Greek debt at 5%). Well, if that was the proverbial canary in the coalmine, today the entire flock just keeled over and died: today the IMF announced it "expanded and enhanced its
lending tools to help contain the occurrence of financial crises." As a result, the IMF has as of today extended the duration of its existing Flexible Credit Line (FCL) to two years, concurrently removing the borrowing cap on this facility, which previously stood at 1000 percent of a member’s IMF quota, in essence making the FCL a limitless credit facility, to be used to rescue whomever, at the sole discretion of the IMF's overlords. Additionally, as the FCL has some make believe acceptance criteria (and with countries such as Poland, Columbia, and Mexico having had access to it, these must certainly be sky high), the IMF is introducing a brand new credit facility, the Precautionary Credit Line (PCL), which will be geared for members with "sound policies [which just happen to need an unlimited source of rescue funding] who
nevertheless may not meet the FCL’s high qualification requirements." In other words everyone. In yet other words, the IMF as of today, has a limitless facility to bail out anyone in the world, without a maximum bound in how much is lendable. One wonders who would be stupid enough to take advantage of the gullibility of IMF's biggest backers (the US), to borrow an infinite amount of money for any reason whatsoever... And just what all this means for the imminent explosion of the amount of money in circulation...Not to mention the brand new Ben Bernanke smokescreen of having a new justification to print a few trillion dollars when Europe unexpectedly collapses yet again.
In discussing the imminent need for its expanded "Crisis Prevention Toolkit" which also comes with 50cc's of adrenaline, ativan, a crash cart, and a defibrillator, Dominique Strauss-Khan (and that's Missus to you Bob Pisani), the corpulent bureaucrat said: “These decisions expand and reinforce the IMF’s crisis-prevention
toolkit and mark an important step in our ongoing work with our
membership to strengthen the global financial safety net. The enhanced
Flexible Credit Line and new Precautionary Credit Line will enable the
Fund to help its members protect themselves against excessive market
volatility,” said IMF Managing Director Dominique Strauss-Kahn. What DSK did not mention is that it is precisely the mechanisms used by the Central Banking Cartel to rise the markets ever higher in light of increasingly deteriorating fundamentals, that are precisely what makes the markets excessively volatile, primary culprit of course being HFT, which is nothing but a government endorsed positive feedback loop.
There's more spin:
This strengthening of the Fund’s insurance-type instruments is aimed to encourage countries to approach it in a more timely fashion in order to help prevent a crisis and, also, help to protect them during a systemic crisis. Mr. Strauss-Kahn added that “the revamped financing toolkit rewards countries that implement strong policies. We expect that the availability of these credit lines to a broader spectrum of countries will contribute to a more stable international monetary system.”
So as the world drowns under trillions of excess debt, the IMF's solution is to throw quadrillions (or, technically, "as much as necessary") of new debt at the problem. And why not: when you have an out of control burning oil well, you nuke it (or so the legend says). And what works for geology surely works for unstable monetary systems, correct?
For the specifics of the actual adjustments as part of today's "repackaging" the IMF provided the following summary:
The enhancements approved today by the Executive Board include:
- Doubling the duration of the credit line (FCL arrangements can now
be approved for either one year, or two years with an interim review of
qualification after one year, whereas they were previously either for
six months, or one year with an interim review after six months); - Removing the implicit cap on access of 1000 percent of a member’s
IMF quota, with access decisions based on individual country financing
needs; and - Strengthening procedures by requiring early Executive Board
involvement in assessing the contemplated level of access and the impact
of such access on the IMF’s liquidity position.
The new PCL is available to a wider group of members than those that
qualify for the FCL. In practice, qualification is assessed in five
broad areas, namely: (i) external position and market access, (ii)
fiscal policy, (iii) monetary policy, (iv) financial sector soundness
and supervision, and (v) data adequacy. While requiring strong
performance in most of these areas, the PCL permits access to
precautionary resources to members that may still have moderate
vulnerabilities in one or two of these dimensions. Features of the PCL
include:
- Streamlined ex post conditions designed to reduce any economic
vulnerabilities identified in the qualification process, with progress
monitored through semi-annual program reviews. - Frontloaded access with up to 500 percent of quota made available
on approval of the arrangement and up to a total of 1000 percent of
quota after 12 months.
And since the NAB, announced with much fanfare, capped out at $500 billion, and since almost 6 months since then have passed, the IMF is now determined to create its own version of Moore's law, by doubling the amount of borrowing availability under its biggest credit facility every six months. To wit, Bloomberg reports: "Talks are ongoing with member countries to raise the IMF
lending capacity to $1 trillion as part of G-20 discussions." The $1 trillion will subsequently be doubled to $2 trillion in January 2011, then $4 in June.... and you get the exponential lidea.
Also further confirming that at the end of the day it is the US that will foot these unlimited expenditures (Bernanke's inflationary wet dream has to start somewhere after all), "John Lipsky, IMF first deputy managing director, told reporters on a conference call today that the institution has enough money to fund the new credit lines. At the same time, he said he is confident that member countries will continue to demonstrate a commitment for the IMF to have the resources to make the new credit lines “credible and usable.” You hear that USA? Oh wait, it was your idea all along, we get it now.
In other words, Europe - prepare: uncle Sam is coming to bail you out once again. Just please give him a reason: our banks demand it, and let's not forget, it is your patriotic duty to bail out US bank balance sheets via semi-hyperinflation. Tonight's move in the EUR and the CHF are a damn good (if on the surface counterintuitive) start.
Lastly, for those lazy readers who always scroll to the very bottom looking for a video clip summarizing all previously said, you are in luck. Here is the IMF's Reza Moghadam condescending, and blatantly lying to all who care, as to what the purpose of tonight's "Crisis Prevention Toolkit" expansion is.
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they're...trying..not...to...say...anything...but...it's...not...easy...in...the...era...of...transparency
Our montary system has no conservation of mass law. There's never any convertibaility between it's liquid state and it's solid state of phase change. Whenever it makes a loan or transfers anything from solid phase to liquid phase (currency) along with the debt payments. You never match up liquid to solid.
Which is why it has to undergo phase changes to make the actual transfer of wealth. First through inflation then through deflation.
It's not a liquidity crisis. It's a you suck at mathematically modeling something and you're getting it wrong and the people who run the equations aren't going to tell you how it works they'll just make you wrong and take everything. Show me a harvard economist and I'll show you a malicious intentive liar or I'll show you an uncomplicit unintelligent idiot who is the worst kind of liar. One who doesn't know he or she is lying. A little forceful debate will either get you a person who confesses or a person who has a psychotic break.
I would be not at all surprised to see smaller communities efficiently managing their own infrastructure. The only one that really worries me (infrastructure failures) is the power grid.
Slip slidin' away
Slip slidin' away
You know the nearer your destination
The more you're slip slidin' away
God only knows
God makes his plan
The information's unavailable
To the mortal man
We work our jobs
Collect our pay
Believe we're gliding down the highway
When in fact we're slip slidin' away
Slip slidin' away
Slip slidin' away
You know the nearer your destination
The more you're slip slidin' away
So, in summary...
http://www.youtube.com/watch?v=XnE8RitIN4s
September 1, 1939
September 1, 2010
How do you say "Oh shit" in Polish?
I'm thinking the US$ is showing remarkably little strength today, anyone else of the same mindset?
FYI
Yesterday, the CBOE P/C Ratio had the lowest volume of the year.
P/C ratio 0.98 => top 30th percentile.
Total 2,249,428 (50% of yearly avg.) ranked 1135th since 2003
2010 Total Average: 4,426,391
Total Volume has dropped to 2,249,428 or below only 13x since February 2007
2010:1
2009:3
2008:5
2007:4
The 2nd lowest volume this year (June 28th, 2,328,783) was followed by three (3) days of P/C ratios >1.00 (1.1, 1.07, 1.26 respectively).
If memory serves correctly, Greenspan noted July 1st (1.26) as a watershed moment for things no longer going according to plan.
http://www.cboe.com/data/PutCallRatio.aspx
This imposes literally infinite liability on America's taxpayers, just as the Teleprompter Tyrant has done with Fannie and Freddie. Can anyone reasonably dispute that they are intentionally seeking to sink the American ship? Some of Obama's advisers have explicitly stated that as their goal. I have even met a man who is part of this group, and who's goals are:
1) Destroy the Dollar and the US economy.
2) Destroy the Constitution and with it, the freedoms and rights that protect all Americans
3) Accomplish the above through debt.
This isn't my opinion. These are stated, but hidden, goals of this group, as told to me face to face by an insider.
The system is heading to a crash, and events will be a bit unpredictable. One thing though is that the American people will restore this country to glory. You can count on that. Have faith.
yes indeed. and your point is?
Thanks for your inside information. Now I can just hate Obama and forget all those other people whom I thought might have a hand in this debacle. Sure makes things easier not to have to track more than one person. Whew!
On second thought, never mind. I'll use my own inside information.
Reza Moghadam @ the IMF....?
He got caught fondling male student's scrotum sacks at the parochial school I attended....
I believe that is a credible accusation.... Look at the guy....
Ciao,
Econolicious
Reading this I thought I was mistakenly redirected to The Onion. Actually, The Onion can't top reality these days.
Another bazooka in the pocket.
Thanks God they never have to use those!
we will all be billionaires soon enough.
A money grab this large & public implies end game mentality.
Clearly, these motherf*ckers think the game is played out.
this is an interesting thought.
Interesting thoughts are a "good thing".
Ruh roh. I guess the whole world is about to crash and burn.
Hey, don't knock Poland! Pretty soon it will probably fall on them to bail out Spain.
I hear a bell ringing
oh shit, that's not a bell, that's an air-raid siren
Do you mean the US government are ready to use Roosevelt's Gold Confiscation Act, allowing the government to confiscate all the gold privately owned by American citizens in order to restore the country's public finance ?
Here it is....and don't forget ....you need a Princeton Harvard Yale club membership to understand this....
Economy 2006/7= BOXA= Total debt and asset valuations
2006/7= 100/100
Today= 60/100...Why? debt destruction
If Fed prints 1$Trillion when debt destruction= 1$Trillion
....then all is ok....
And don't forget....this is the best solution that a certain Princeton Economist can muster....
....................................
Polyecon = ?????
?????= your response is duly noted....
As usual the desires of the few outweigh the needs of the many.
"but it is precious to me."
No Garden Variety Recession
Tuesday, Aug. 31, 2010 7:06AM - Globe & Mail - excerpts
Is this a depression?
What’s a depression anyway? Basically, a depression is a very long recession.
You know you’re in a depression when interest rates go to zero and there is no revival in credit-sensitive spending.
The economy is in a depression when the banks are sitting on $1.3-trillion (U.S.) of cash and yet there is no lending going on to the private sector. It’s called a liquidity trap.
Depressions, usually, are caused by a bursting of an asset bubble and a contraction in credit, whereas a “plain-vanilla” recession is typically caused by inflation and excessive manufacturing inventories.
You tell me which fits the bill today.
When almost half of the ranks of the unemployed have been looking for a job fruitlessly for at least six months, you know you are in something much deeper than a garden-variety recession. True, we can’t see the soup lines; but the soup lines are in the mail – 99 weeks of unemployment cheques for more than 10 million jobless Americans. Don’t be lulled into the view that we are into anything remotely close to a normal economic cycle.
In a depression, secular changes take place. Attitudes towards debt, discretionary spending and homeownership are altered for many years, or at least until the scars from the traumatic experience with defaults and delinquencies fade away. That could be a reason why we saw existing home sales slide to 15-year lows and new home sales to record lows despite mortgage rates tumbling to their lowest levels in modern history.
Let’s be clear. After all the monetary, fiscal and bailout stimulus, the economy should be roaring ahead, as would be the case if the economy were coming out of a normal garden-variety recession. The fact that there has been no sustained response is testament to the view that this is not actually a traditional recession at all, but something closely resembling a depression. That, my friends, is exactly what the bond market is signalling, with U.S. Treasury yields rapidly approaching Japanese levels.
What is important to know is this. In that initial four-year economic downturn, from 1929 to 1933, there were no fewer than six – six! – quarterly bounces in the GDP data. The average gain in these up-quarters was 8 per cent at an annual rate! But because they proved not to be sustainable, the National Bureau of Economic Research refused to declare that the recession officially ended, even though the stock market rallied 50 per cent in the opening months of 1930 on the belief that the downturn was about to end. False premise.
Guess what? We may well be reliving history here. If you’re keeping score, we have recorded four quarterly advances in real GDP, and the average is only 3 per cent.
This is going to sound like a broken record, but it took a decade of parabolic credit growth to get the U.S. economy into this deleveraging mess and there is clearly no painless “quick fix” toward bringing household debt into historical realignment with the level of assets and income to support the prevailing level of liabilities. We are talking about $6-trillion of excess debt that has to be extinguished, either by paying it down or by walking away from it (or having it socialized)."
http://tinyurl.com/3xfnolx
"The economy is so bad, I went to my bank the other day and the teller handed me a note saying, "This is a robbery!"
The economy's so bad, Exxon-Mobil laid off 25 Congressmen.
The economy is so bad Dick Cheney took his stockbroker hunting.
The economy's so bad, I ordered a a burger at McDonalds and the kid behind the counter asked, "Can you afford fries with that?"
It looks like more than 13,000 people were caught up in that Bernard Madoff Ponzi scheme. You know what a Ponzi scheme is? That's where you throw good money after bad, or as the government calls it, a stimulus package. But very similar.
The U.S. Post Office announced they could run out of cash by the end of the year. They said they're in serious danger of becoming a bank. That's how bad it is."
Isn't there even ONE sane 'leader' type left in the world? Or are they all SO corrupted they wont even say 'STOP shooting more holes thru the hull of the ship'! Theres a buck in it for them so they keep blasting away?
He was ridiculed as "General Betrayus." He has "no interstest in running for office."
I swear that deflationists must be living in their mother's basements!
Nope. today it's Tulsa. Yesterday it was St Louis. Where you goin' Infinite QE? Where you been?
No surprise that the CNBC's "QUACK ON DA' STREET" is claiming upcoming 'data challenges' - Well I have a REAL Data challenge - How in GOD's name could ANY EU banking stocks be upgraded?? I was just told UBS and/or Credit Suisse upgraded some EU banking stocks - if this is true then this can only be taken as confirmation...
Will, we are all in wonderland. Anything can happen. I'm doing nothing until the Red Queen gives her take.
@Hall 9000
" The U.S. Post Office announced they could run out of cash by the end of the year. They said they're in serious danger of becoming a bank. That's how bad it is."
It seems to you a most improbable case . But it is not :
Public French Post Office, La Poste, has just become a private bank, La Banque Postale, at the expense of their postal services , which used to be first rate and are now slow and very bad.
Sending a letter from a French city to another takes at least two days whereas before it used to be delivered on the following day . Thirty years ago it could even be delivered on the same day as two postpeople used to pass in your street every day, one in the morning and one in the evening . It used to be a public service, with no financial purpose, just for the citizens'satisfaction .
Now it is getting worse and worse . I witnessed a surrealistic scene at the post office . A man was asking for the parcel he had just received from the USA. He gave his receipt and the Post Office agent gave him a ruin of a parcel still closed. The man said he wanted the ruined parcel to be opened in front of the Postal agents for them to testify in case the content might be broken : it was a very rare collection piece he had bought from an American seller . The Post Office agents refused, saying "either you accept the parcel as it is and you open it at home or you refuse it and we send it back to your seller " . In short, the French Post and the foreign post felt no more responsible of the way the parcel had been transported by their services . The man had to send back the rare collection piece to the seller without being given the opportunity of seeing if, after all, the collection piece might not be broken .
That is the result of the French Post becoming a bank, la Banque Postale .
IgnorANUS Muckup Fraud has just sealed hyper inflation and devaluation race of fiat currencies to end soon!! Financial eternal skunk works go round has stunk up, chit and pissed in vermin financial living quarters for too long and drowning in own sewage!! Good bye to a failed corrupt system!!
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Back in April, when we discussed the inception of the IMF's then brand new New Arrangement to Borrow (NAB) $500 billion credit facility, we asked rhetorically, "If the IMF believes that over half a trillion in short-term funding is needed imminently 70-680, is all hell about to break loose." A month later the question was answered, as Greece lay smoldering in the ashes of insolvency, and the developed world was on the hook for almost a trillion bucks to make sure the tattered eurozone remained in one piece (leading to such grotesque abortions as Ireland, whose cost of debt is approaching 6%, funding Greek debt at 5%). Well, if that was the proverbial canary in the coalmine, today the entire flock just keeled over and died: today the IMF announced it "expanded and enhanced its lending tools to help 70-683 contain the occurrence of financial crises." As a result, the IMF has as of today extended the duration of its existing Flexible Credit Line (FCL) to two years, concurrently removing the borrowing cap on this facility, which previously stood at 1000 percent of a member’s IMF quota, in essence making the FCL a limitless credit facility, to be used to rescue whomever, at the sole discretion of the IMF's overlords. Additionally, as the FCL has some make believe acceptance criteria (and with countries such as Poland, Columbia, and Mexico having had access to it, these must certainly be sky high), the IMF 70-685is introducing a brand new credit facility, the Precautionary Credit Line (PCL), which will be geared for members with "sound policies [which just happen to need an unlimited source of rescue funding] who nevertheless may not meet the FCL’s high qualification requirements." In other words everyone. In yet other words, the IMF as of today, has a limitless facility to bail out anyone in the world, without a maximum bound in how much is lendable. One wonders who would be stupid enough to take advantage of the gullibility of IMF's biggest backers (the US), to borrow an infinite amount of money for any reason 70-686 whatsoever... And just what all this means for the imminent explosion of the amount of money in circulation...Not to mention the brand new Ben Bernanke smokescreen of having a new justification to print a few trillion dollars when Europe unexpectedly collapses yet again.
read more.. http://www.zerohedge.com/article/imf...repares-print-
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The absolute funniest part of this whole thing is watching the pols scramble to try to manage the economy, which is, of course, impossible. What is revealing about it is this: they still have their heads stuck firmly in the old paradigm, the one they grew up with, inculcated in them by Greenspan, that the Fed has always got their backs, that the system can go on forever based on lies and borrowed money scbcd braindumps/scmad braindumps/VCP-410 dumps/350-001 dumps/640-802 dumps/SY0-301 dumps/70-680 dumps/642-813 dumps/350-030 dumps/642-902 dumps