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IMF Prepares For Action: Signs Agreements With Three Countries Increasing Borrowing Capacity By $7.2 Billion, Expands Total Access To Over $500 Billion
Late today, the IMF released details of three borrowing agreements signed between the organization and the National Banks of Belgium, Slovakia and Malta. The total amount between the three agreements provides the IMF with additional borrowing power of €5.3 billion. While the incremental capacity is not in itself material, it bears to keep in mind the full recourse the IMF has access to. As the press release notes: "The agreement is part of a commitment made by the European Union in
March 2009 to contribute up to €75 billion (then equal to about US$100
billion) to support the IMF’s lending capacity (See Press Release No. 09/82). The European Union has since committed an additional €50 billion to the Fund’s expanded New Arrangements to Borrow (see Press Release No. 09/298)." In summary, with today's expansions, the IMF now has access to just over $500 billion in firm commitments as part of the IMF's April 2 agreement to triple its lending capacity to $750 billion.
As the IMF's bail out role will soon achieve much greater prominence, we present the full listing of countries pledging support to the IMF. The US comprises roughly 20% of total backstop capital. In other words for every dollar the IMF provides to Greece, Portugal, Spain, Italy, Hungary, Bulgaria, Latvia, Ukraine, etc., American taxpayers will be on the hook for 20 cents.
Japan - $100 Billion
- IMF Signs US$100 Billion Borrowing Agreement with Japan (February 13, 2009)
- Borrowing Agreement with the Government of Japan
- IMF Lending: IMF Signs $100 Billion Borrowing Agreement With Japan
- IMF head Dominique Strauss-Kahn thanks Japan for $100 billion loan
European Union - $178 Billion
- IMF Signs €120 Million Borrowing Agreement with the Central Bank of Malta (February 12, 2010)
- IMF Signs Agreement to Borrow up to €4.74 Billion from the National Bank of Belgium (February 12, 2010)
- IMF Signs Agreement to Borrow up to €440 Million from the Slovak Republic (February 12, 2010)
- IMF Signs €1.06 Billion Borrowing Agreement with Banco de Portugal (November 30, 2009)
- IMF Signs €1.95 Billion Borrowing Agreement with the Danish Central Bank (November 4, 2009)
- IMF Signs €5.31 Billion Borrowing Agreement with De Nederlandsche Bank (October 5, 2009)
- IMF Signs €4 Billion Borrowing Agreement with Spain (October 5, 2009)
- IMF Signs €15 Billion Borrowing Agreement with Deutsche Bundesbank (September 22, 2009)
- IMF Signs €11 Billion Borrowing Agreement with France (September 4, 2009)
- Statement by IMF Managing Director Dominique Strauss-Kahn on the European Union’s Announcement of Additional Financial Support (September 4, 2009)
- IMF Signs US$15 Billion Borrowing Agreement with the United Kingdom (September 1, 2009)
- Statement by IMF Managing Director Dominique Strauss-Kahn on the European Union's Announcement of Financial Support for the IMF (March 20, 2009)
Norway - $4.5 Billion
- IMF Signs US$4.5 Billion Borrowing Agreement with Norway’s Central Bank
(July 6, 2009) - Statement
by IMF Managing Director Dominique Strauss-Kahn on Norway's
Announcement of Possible Financial Support for the IMF of up to about
US$4.5 billion (March 28, 2009)
Canada - $10 Billion
- IMF Signs US$10 Billion Borrowing Agreement with Government of Canada (July 8, 2009)
- Statement
by IMF Managing Director Dominique Strauss-Kahn on Canada's
Announcement of Financial Support for the IMF of about US$10 billion (April 3, 2009)
Switzerland - $10 Billion
- Statement
by IMF Managing Director Dominique Strauss-Kahn on Switzerland's
Announcement of US$10 Billion in Financial Support for the IMF (April 8, 2009)
United States - $100 Billion
- IMF
Managing Director Dominique Strauss-Kahn Welcomes U.S. Congressional
Approval of IMF-Related Legislation, Including U.S. Financial
Commitment of Up to US$100 Billion (June 18, 2009) - Letters from the President of the United States to U.S. Congressional Bipartisan Leadership on NAB Fund (April 20, 2009)
Korea - At least $10 Billion
- Korea Finances IMF's Lending Resources (May 4, 2009)
Australia - $5.7 Billion
Russia - Up to $10 Billion
China - Up to $50 Billion
- IMF Signs US$50 Billion Note Purchase Agreement with China (September 2, 2009)
- IMF Managing Director Dominique Strauss-Kahn Welcomes China’s Intention to Invest Up to US$50 billion in Notes Issued by the IMF (June 9, 2009)
Brazil - Up to $10 Billion
- IMF Signs US$10 Billion Note Purchase Agreement with Brazil (January 22, 2010)
- IMF
Managing Director Dominique Strauss-Kahn Welcomes Brazil’s Intention to
Invest Up To US$10 Billion in Notes Issued by the IMF
(June 10, 2009)
India - Up to $10 Billion
- IMF Managing Director Dominique Strauss-Kahn Welcomes India's Commitment to Buy up to US$10 Billion of IMF Notes (September 5, 2009)
Singapore - $1.5 Billion
- IMF Managing Director Dominique Strauss-Kahn Welcomes Singapore’s Commitment of Additional Financial Support for the IMF (September 8, 2009)
Chile - $1.6 Billion
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Remember back in late 2008 all those bank SIV's that were made to help cover real estate losses? This is like that but with an exponent... Fu@#ing retarded.
If I remember right all those SIV's were drained as quickly as they were put together. Clearly the IMF is made up of Masochists.
and the monopoly game will go past midnight...
im so happy i dont pay taxes. Just a huge amount for cigarettes and 19% VAT.
You dont pay taxes? How is that?
This can be accomplished in all sorts of ways, including tax evasion and poverty.
im a student, after that i keep my job as a freelancer below the minimum wage of 8500 € /year.
This is epic. Bring on the nuclear bombs. I'd rather die puking my guts out from radiation poisoning then ever live "paying off" this scum-sucking merde.
I think I'm going to start yelling publicly in random places. I'll see you on CNN. This has been, and always will be, a game of tolerance.
Sitting here watching johnny go fuck me dancing in the olympics, hating life itself for the bastardization of truth that world has become, longing for the wisdom of my dead father who lived through and escaped more than any human being alive (Bombing of Dresden, Berlin, hanging with Sadat, etc...), and you sir have brought me the gift of laughter. Thank you. I too will see you on CNN. CNN: where the world comes to go fuck itself.
ice dancing.
*snort*
I bow to you, Altan.
I want to help them too!!!!!
I offer 1 trillion Doo-Doo's to their disposition! They don't even have to thank me.
Zero Hedge is my favorite place these days. Not only is it highly enlightening but only ZH readers are capable of making me laugh in the face of such grim and heinous debauchery!
Fuck the world!!!!!!!!!!!
I'm also shamed to say I was one the SOB's who forced other players to continue playing monopoly by offering them low interest loans!!
...indeed the monopoly game is going far past midnight this time!
You are not alone... back then we also had interest loans in Monopoly. Sometimes we also had the bank emitting hand made, higher denomination notes to deal with the consequences: wealth concentration and shortage of official notes, thus inflation.
Looking back, the writing was on the wall...
If the IMF comes to rescue Greece it will humiliate the EU. The big question is what impact this will have on the markets...will it make everyone happy in the short term? My guess would be yes, but how long will the efficacy last after Portugal, Spain et al come and belly up to the bar?
where's the money coming from ? selling their gold to China. YUM!!
You are right. Fuck it all. Just doesn't pay to work anymore when all you do is pay for the criminal losses of the banking cartels and deadbeats.
Put me on the dole with everyone else--pass the joint and ho ho's please.
This whole thing kinda chaps my ass.
+2...cheeks
IMF / SDRs is the final obfuscation for bad fiat currency; in the meantime, think of all the small countries IMF is going to get to eat.
It's time I become Geithnerized, and learn the way of the tax cheat. I will not pay. Fuck'em
The IMF is the bankers’ plan for world government, they plan to morph it into a single central bank, with one currency, one printing press. They would fold it all in and no politician could stand up to them. It’s a plan that will never work. People won’t volunatarily work for less than they’re expecting out of life. Second, none of these people involved have the least bit of morality or honesty. News reports make it sound like bankers are cooperative. But in reality, they are at war They are liars and thieves; they lie and steal from each other. They’re burglars and bandits. They are not James Madisons. They are John Dillingers and Amschel Rothschilds. You want proof? Just read their words. They lie every day. They make William Jefferson Clinton look like some kind of Sunday School teacher.
Excerpt from Why Is All This Happening? It’s the War Between Bankers by Bill Sardi | December 14, 2009
Fang Xinghai, director-general of Shanghai's financial-services office, recently described the difference between the Chinese and U.S. approaches to bank regulation in the Wall Street Journal: "In the U.S., the regulators don't believe in regulation to begin with," he said, and pointed a finger at former Federal Reserve Chairman Alan Greenspan's belief that the Fed's job wasn't to prevent or deflate assets bubbles, but to "deal with the consequences."
Resorting to the unthinkable
Unable to create a level competitive field for banking, the bank reform effort has now shifted away from cooperation to a master plan to take down the world’s economies and exercise complete control in the aftermath by introduction of a master plan to control banking and currency.
According to [Bruce] Wiseman (A Look Behind The Wizard’s Curtain: The Financial Crisis: The Hidden Beginning), the plan underway now is to intentionally "take down the United States and the U.S. dollar as the stable datum of planetary finance and replace it with something called a Global Monetary Authority" that will issue a single global currency via the world’s central bankers, who in turn distribute money to depository and investment banks.
What Wiseman is talking about here is that a small group of less than a dozen central bankers are likely to rule the world via control of currency.
As confirmation of Wiseman’s claim, the call for a "global monetary authority" was echoed by a Yale professor in the Financial Times in 2008.
What looms is a single global currency, probably issued by the International Monetary Fund (IMF), which will then exert control over the world’s banks. A more complete picture of what is likely being planned is provided here and here.
The intentional take-down of the world’s economies and establishment of a world currency will be spawned out of planned chaos which would provoke the planet’s masses to beg for relief. The new currency and its new central bank will be offered up as the quickest solution to the world’s economic turmoil.
But will world control be lost?
However, the bankers and elites risk losing control of the world that they now hold. As investigative journalist Daniel Estulin reports, "One of Bilderberg’s primary concerns accordingly is the danger that their zeal to reshape the world by engineering chaos in order to implement their long term agenda could cause the situation to spiral out of control and eventually lead to a scenario where Bilderberg and the global elite in general are overwhelmed by events and end up losing their control over the planet." (The Bilderberg Group, comprised of over 100 influential people, meets annually to discuss issues of world concern.)
Yet central bankers and elitists plod ahead, all the while attempting to tighten their grip on the masses. Following the G20 (20 leading countries of the world) meeting at the beginning of April, 2009, it was reported that, "The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity." A communiqué released by the G20 leaders stated that, "We have agreed to support a general standard drawing rights (SDR) allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity," and that, "SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century." Essentially, "they are putting a de facto world currency into play. It is outside the control of any sovereign body."
IMF plants an agent in our midst
The IMF has the right man in place to do the job in the U.S. Timothy Geithner, U.S. Treasury Secretary, was director of the Policy Development and Review Department (2001–2003) at the IMF. Geithner is also well connected in other circles. He was also part of a consulting firm in the 1980s owned by former Secretary of State Henry Kissinger. Furthermore, Geithner was also president of the Federal Reserve Bank of New York and a staffer at the Council on Foreign Relations.
Geithner, as U.S. Secretary of the Treasury, apparently sees no conflict between his duty to uphold the U.S. Constitution and a one-world currency. He goes along with the agenda to abolish the US dollar in favor of a global medium of exchange. Geithner was quoted to say: "Our hope is that we can work with Europe on a global framework, a global infrastructure which has appropriate global oversight."
What lies ahead
…Such plans, to usher in a one-world government and a single currency, were made decades ago by elitists and central bankers, but they were waiting for world events to be engineered in a manner to create the perfect storm that would cause Americans to give up their sovereignty, and their greenbacks, in exchange for a new type of play money and subservience to another rule of law outside the U.S. Constitution. Professor Carroll Quigley described this covert plan in the 1960s in his book entitled Tragedy and Hope: A History Of The World In Our Time. Another broad description of this plan is found here.
World control
Few Americans catch on to the fact that central bankers, not elected representatives, have controlled America for some time now. It was the British banker Mayer Amschel Bauer Rothschild who said in 1791: "Allow me to issue and control a nation's currency, and I care not who makes its laws."
The world exists for the central bankers to plunder, and no one else. What is good for the central bankers is good enough for the rest of the world. It’s like the world is a tiger that is being slung around by its tail. If central bankers aren’t paid their dues, the world must suffer. Yet the bankers must not be deprived of their seven, eight and even nine-figure commission checks amidst the turmoil. The world is being slung into economic chaos over a long-standing war between central bankers. If the masses only knew.
http://www.lewrockwell.com/sardi/sardi138.html
We are only as rich as the IMF allows us to be.
Hey at least they kept the original Michael Jackson part in the new 'We Are The World'.
the IMF consoldates the western curriences .. asia will do the same
gold the only real money will compete.. the zit kids on these zero hedge boards will give us a comparative lesson in diaper economics from the simplistic a burger and drink for 1.99.. mouth off about gold ..(even though most could not spring for the 1200 bucks )
grouse off how they have been defrauded ...
deliver keynesian sludge ,, do nothing but buy alternative energy stocks .. and crap all over the notion
that nations and central banks , and hedge funds are rushing to buy gold to protect assets ,
gold to 5000.. and stays put as it balances the financial statements of the prolific paper pushers '
a lesson in how not to listen to the pavlovian dog poo about gold
since nixon defrauded the world by closing the gold window
bet on it..p.s. watch silver the other currency break away from the giant shorts of a couple large banks ,, and on to 50 and higher
International Moron Fund. Stupid assholes bailing out stupider assholes one gigantic clusterfuck at a time.
+1
Does this mean that China pledges $150 Billion?
next year, China will pledge us
If this is the case, I will deduct this from my tax return next year. This is BULLSHIT and should not be allowed to continue. Bailout this. Bailout that. It should be called what it really is: ENCOURAGEMENT FOR FURTHER WRECKLESSNESS AND BAD BEHAVIOUR. That's what EVERY flippin bailout has done.
Yeah- give the heroine junky more heroine, give the drunk some cash to go buy some more booze. Good idea, dumbasses.
If not for people's hands getting burned from touching a hot flame, we'd all be walking around with stumps at the ends of our arms. Sometimes.... pain is good.
If not for people's hands getting burned from touching a hot flame, we'd all be walking around with stumps at the ends of our arms. Sometimes.... pain is good.
Financial leprosy is now government policy. They don't care how disfigured the economy becomes.
Does this sound familiar?
Peter: "Uh, I don't like my taxes, and, uh, I don't think I'm gonna pay anymore.
Joanna: You're just not gonna pay?
Peter: Yeah.
Joanna: Won't you get audited?
Peter: I don't know, but I really don't like paying them, and, uh, I'm not gonna pay.
Joanna: So you're gonna not file?
Peter: Nuh-uh. Not really. Uh, I'm just gonna stop paying.
Joanna: When did you decide all that?
Peter: After I read a Zero Hedge article.
Joanna: Well, what are you going to do about your house when they put a lien on it and...
Peter: You know, I never really liked paying my mortgage. I don't think I'm gonna do that, either.
Joanna: Well, so what do you wanna do?
Peter: Read more Zero Hedge.
Wow those 10,000 people who read zero hedge. They are going to influence everbody to do everything.
Yawn.
I'm busy at work on a list of reasons why Greece will have every incentive to clean up its act once it gets bailed out, but I'm a little stuck on Reason #1. Little help please!
i'm tellin' ya man, somebody should put in a hostile bid for the Akropolis with plans to turn it into a shopping mall...maybe that would put the fear of the gods in them.
IMF signs $911 billion borrowing agreement with Mr Lennon Hendrix.
Simon Johnson on Greece
Plutus, the Greek god of wealth, did not have an easy life. As the myth goes, Plutus wanted to grant riches only to the "the just, the wise, the men of ordered life." Zeus blinded him out of jealousy of mankind (and envy of the good), leaving Plutus to indiscriminately distribute his favors.
Now Plutus wants his money back. Europe is entering unprepared into a serious economic crisis—and the nascent global recovery could easily collapse due to the unsustainable and Ponzi-like buildup of government debt in weaker countries.
http://online.wsj.com/article/SB1000142405274870352570457506117292696798...
How about those “we told you so” comments from Europeans opposed to fiscal fraternity in the eurozone?
Says Matthew Elliott, chief executive of the British Taxpayers’ Alliance today in an AP story: “Greece is a living example of why you should never give up control of your own currency.”
Swedish economist, Rolf Englund, who campaigned against the euro in a 2003 Swedish referendum said the current crisis underscores why Swedes resoundingly decided to keep the krona. The euro “will crack sooner or later. It’s impossible to have a common currency for such a big and diverse area.”
Americans need to listen closely to this currency talk if a future WORLD CENTRAL BANK is waiting at the end of the IMF tunnel.
WTF...they are going to borrow money from nations that are themselves HEAVILY indebted?!?!
This isn't even paper gold or paper oil, it's paper PAPER.
A bankrupt sovereign doesn't have anything to lend the IMF except for bullshit created from thin air. With each passing day the paper bullshit pyramid just seems to grow and there is nothing whatsoever behind it. Everyone should just say eff you to the bankers and the IMF
paper paper...I like it.
The Big One is coming soon, bigger than the 2000 dot-com crash and the 2008 subprime credit meltdown combined. A huge market blowout.The Big Crash is Coming...."debt bomb" Explosion
Can somebody, who knows about the European workings help me with this question, please.
As far as I know the Maastrich Treaty prohibits the ECB and EU from monetizing debt. This was included to the treaty due to much bad experience with money printing in Europe in the past.
When the sovereign nation central banks (as opposed to the ECB) lend money to the IMF, is that money lending out of existing reserves, or is this in fact credit money that is created at the click of a button and thus money printing?
I mean, is this how the debasement of European currencies is in fact carried out?. Through a detour around the IMF?
According to one of the abovementioned agreements, the funds are lend in a EUR equivalent SDR amount. The individual drawings are denominated in SDRs, but the principal is repaid in the national currency and the interest is repaid in SDR's but with an option to be repaid in the national currency.
My first question was "what is the exit?". In about a New York second I realized there is no "exit". There is no intent to repay, and there never was. The central banks and their government are addicted to borrow, print, spend, borrow, print, spend. With the advent of electronic money (aka "liquidity") they only have to click the mouse button to create all the liquidity they want.
I call what the central banks are doing, "co-inflation". They can all create liquidity as long as they sustain the same relative rate of creation. This keeps FX rates within the same ranges even as general price levels will rise accordingly everywhere.
How does one manage their personal capital in light of the grandest fraud in all of human financial history?
You don't see what is coming??
All those funds are just the beginning for IMF to become the Bank of the World Federal Reserves or the new to be created World Bank.
Although only few bought SRD (China and Brazil)
SRD is not likely to take over as the world currency as it is but it's likely that a new SRD (with the inclusion of other currencies such as the Yuan, Real etc.) will see the light soon.
With this, the US are likely to have a huge problem in leveraging their economy going forward and this is precisely why they will print as much money the can before this happens...and the 2nd phase will simply be the devaluation of the dollar and the defaul or an hyperinflation that would wipe-out all savings.
Sad but a real possibility
Greece's problem is that they are a slacker and they gave up the right to pretend they can create something of value. Thus they have to rely on others (US, Japan, Germany and Malta?) who have retained pretension privileges and can do Rumpelstiltskin one better by turning absolutely nothing into something that currently passes for gold.
It's all grand theater, even if we always know how it will end. A crisis emerges. Worried politicians try to calm markets. Hurried meetings are called where ashen faced men in suits go behind closed doors to do their magic and come out with a solution. The eleventh hour passes and markets shudder. At a stroke to midnight someone gets the same old brilliant idea: let those who still have ink print new money. Markets applaud. The system is saved. Lesson learned. A new Potemkin Village arises from the rubble of the last collapse.
How many times can we recycle this same tired story? Infinite, it seems. No doubt we will come up with new permutations in our future, with players changing sides, but with the markets just as accepting and equally as relieved by the quick and brilliant action of our modern day financial heroes.
Yes, there will be a day when Abu Dhabi bails out Dubai and Greece bails out Japan. And Goldman Sachs bails out Ben Bernanke.
And we will all take heart and praise the free market system while we lift offers on banks and REITs and homebuilders and solars. Life is good.
How many times can we recycle this same tired story?
IMO, chindit13, the show is over. There will be no curtain call. The piper has demanded payment. But I see the story line a little differenctly: it wasn’t about free markets; it was more akin to gangsterism. As one reviewer put it:
What is with this tendency to have Goldman Sachs alumni in all sectors of decision making? Robert Rubin, Henry Paulson, Tim Geithner! These apparatchiks are akin to the nomenclatura of the communist party. They are spread throughout our society to be the keepers of the faith. They are the heads of the economic inquisition. Any HERETIC will pay the price! In 1998, Brooksley Born who had been appointed the head of the Commodities Futures Trading Commission had the HERETICAL CONCEPT PERCEPTION that the (OTC) OVER THE COUNTER DERIVATIVES HAD TO BE SUPERVISED.
The Rubin-Goldman Mafia ran her out of town, and here we are with a FRANKENSTEIN OF OVER THE COUNTER DERIVATIVES THAT ARE MORE DESTRUCTIVE THAN THE SUBPRIME DEBT TRIGGER THAT CREATED THE CASCADE OF TIGHTLY COUPLED FINANCIAL INSTRUMENTS INTO A CREDIT FREEZE. When you make heretics pay the price of telling the truth to power, your society has no place but down. In a democracy, there can be no heresy! All ideas must be tested and falsified and adopted if truly functional. THIS IS INHERENT IN EVOLUTIONARY ADAPTATION.
"It doesn't matter whether a cat is black or white, can it hunt mice". We as a society decided that
only greedy cats who ate our steaks and left us the mice to eat were going to run the financial system.
Are we morons? Even worse, we now want these greedy cats to literally eat our flesh and
leave us as a skeleton country in total debt. The mice are the derivatives that are totally separate
from the subprime mortgage crisis. The greedy cats will eat the flesh and the mice will eat the bones.
EITHER THE GOVERNMENT TAKES CONTROL FROM THE GREEDY CATS, and resets the system
to be regulated, or we will fail. We will fail for the same reasons the communists failed. They were
inefficient apparatchiks who ran the system for their purposes and subjugated the people with totalitarian ideas. The financial elite is the same! They just use more subtle and stealthy methods developed in Madison Avenue. They manufacture consent and root out the heretics.
i think that we might be headed for a little hiccough. The EU looks headed for a double dip, Greece is at high risk of being cut (again) by moody's and S&P on account of worse than expected GDP (and political gridlock), and Dubai is back in the news -- http://ricardianambivalence.wordpress.com/
YAWN
Look guys and gals @ ZH, what did you really expect in a FIAT currency system? There is no more honesty in the system as it has long left the barn and the door is still wide open to pretend and extend. As long as money is just a notation in some ledger, then everyone gets all they can eat.
"In the absence of a gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good and thereafter decline to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as claims on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to be able to protect themselves.
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." --- Alan Greenspan, 'Gold and Economic Freedom' (1966).
ukraine is not and will never be in eu...
wtf Japan signing 100 billion in the middle of the crisis (Feb 13, 2009)!!!?
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