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IMF Prepares For "Threat To International Monetary System"
Back in April 2010, before Waddell and Reed sold a few shares of ES, effectively destroying the market on news that Europe was insolvent, we made the following observation: "The IMF has just announced that it is expanding its New Arrangement to Borrow (NAB) multilateral facility from its existing $50 billion by a whopping $500 billion (SDR333.5 billion), to $550 billion." Little did we know that our conclusion "something big must be coming" would prove spot on just a month later after Greece, then Ireland, then Portgual, and soon Spain, Italy, Belgium, and pretty much all other European countries would topple like dominoes tethered together by a flawed monetary regime. Well, based on news from Dow Jones we can now safely predict the following: "something bigger must be coming." As if the IMF's trillions in open lending facilities (many of which have recently been adjusted to uncapped) were not enough, we now learn that the world lender of last resort (which in theory is the Fed, but apparently Bernanke has been getting a little shy lately so is offsetting his direct lending directives to secondary organizations like the IMF, leaving the Fed with only USD liquidity swaps) is about to activate a "Special Funding Pool" - Dow Jones explains: "The International Monetary Fund is expected to soon activate a special funding pool that will boost the fund's ability to prevent or resolve economic crises, two people familiar with the situation said Thursday. One of the people said the activation of the funding--which can only be made by a special request from the IMF managing director to the board--was in anticipation of an expected wave of new IMF programs, including the possible expansion of the Greek bailout package." Wonderful. Global financial cataclysm rinse repeat all over again...
More from Dow Jones:
Activating access to the funding pool could provide assurance to the market of the IMF's ability to backstop any major funding crisis amid ongoing fears that Europe's sovereign debt woes will worsen. The IMF board recently approved a boost to the so-called New Arrangements To Borrow, bringing the special pool of funding to around $580 billion, adding several hundred billion dollars to the total amount the fund has to tap. According to the IMF, the pool of supplementary resources are only to be activated when "needed to forestall or cope with a threat to the international monetary system."
Although no request has been made, markets, analysts and economists say rejection by the Portuguese parliament Wednesday of a belt-tightening budget all but sealed the likelihood Lisbon will request aid from the IMF and the European Union.
Bottom line: there is a new threat to the international monetary system which means Europe May 2010 redux is imminent.
US taxpayers: our condolences.
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& to think that I remember a time when a banker was a trusted member of the community .........where the hell is the shame of it all.
Really? When was that?
it was actually a movie...and that bankers name was George Bailey. nice movie though:-)
You must be a youngster.
Back when I was working my way through college (mid-70s), I sometimes had a tough time paying my credit card at the beginning of the semester when tuition (unbelievably inexpensive!!!) was due. I walked into my local bank, sat down and spoke with a big wig, English-speaking human, and they cut me all sorts of slack and they didn't raise my interest rates, cancel my card or destroy my credit.
I suppose they could have been dishonest but I never experienced it. Instead, I was always treated with great customer service and they at least did a fine job of pretending that my paltry sum on deposit mattered to them.
I'd take the 50s, 60s and yes, even the 70s, warts and all, over the disaster we're living now.
Yeah, what happened anyway? I remember those days. Although it was also an advantage to be white, I must admit.
http://www.youtube.com/watch?v=_LgDjHOX_UE&feature=player_embedded
Posted by another ZH reader earlier that says it all...
Biggest laugh today is trash talking of Zero Hedge on Denniger's site. Someone said ZH been calling bad for 2 yrs!!! I almost peed. Especially cuz I got kicked off that site for talkin' gold.
Thanks to ZH for money I've made on the INFLATION trade. Oh, no, Karl someone said INFLATION, are you gonna come over here and kick me off!!! Bully. He was banning posters who had thesis of inflation 2 yrs ago. KD thinks nukes are good (I'm pounding my knee laughing so much). Yeah, his fabulous YRCW pick told everyone to buy long term hold right before it plunged. His stock picks might be worse than Cramer.
Thank you ZH for coverage of nuclear reactor problems should be up for pulitzer. There is massive media coverup going on. Reading documents from Physicians for Social Responsibilty is all I needed to see that none of the Wall Street boys will be moving their families to Tokyo and let their children risk leukemia. The rebuild trade, right. Does CAT use hazmat suits?
Hilarious. Did you ever get the `I was a CEO' lecture from ole Karl? The guy is a lunatic. I tried to debate the inflation scenario with him 5 years ago and he told me I'd go broke! LOL! He'll be eating dirt before this is all over.
No doubt. Ins't it amazing to read the garbage being thrown around by the PM's trolls today? We set new records earlier and then had the beatdown/margin hike. Well, this "correction" (LOL) didn't even last 24 hours. We are right back where we were yesterday before the margin increases.
People like KD have no clue whatsoever.
I'm betting on deflation pretty soon. But timing is everything, and despite Denninger's best intentions and his smarts, he's a horrible trader and has narrow vision. I usally take the other side of his opinion.
He votes Obama, I vote McCain. He trashes gold, I buy gold. He says time for market to crash, I buy market. He calls global warming hoax, then I look into it, and decide it's not hoax. He says crisis in Japan overreaction, I had thought so, but now as usually the case, it's not.
Radiation doesn't kill like splat your dead (unless you're close to source) it's the lovely kind of death, where you get sick and linger in illness for a long time.
Not a hoax, you may wish to study a bit more. Especially studies of the big lie and methods of propaganda..
"AGW .. not a hoax" - in case you consider looking into that again, here:
http://everist.org/archives/links/!_AGW_CRU_emails_links.txt
http://everist.org/archives/links/!_AGW_links.txt
It would be surprising if someone managed to be wrong *every* time.
If this is to me you have me 180 off, of course MMGW is a hoax can be nothing else. Imagine if I made liberals all burn coal because my studies that I lost all original source data on demanded it.. ha...
Karl Denninger, the self proclaimed
fianance expert
trading expert
computer & programming expert
business expert
oil drilling expert
oil toxicity expert
constitutional law expert
financial law expert
mortgage expert
nuke expert
radiation effects expert
environmental expert
...
The only thing that dwarfs the size of his mouth, is the size of his ego.
Once upon a time, a certain king in a land of ease wished to settle accounts. Usurers who owed billions were brought to him. The Usurers had bribed the gullible into burdensome loans they knew the debtors could not repay. Floundering beneath the loans, the debtors scoured nickels and dimes to pay what they could. Since the debtors could pay neither quickly nor substantially, the Usurers added new fees and even higher rates of interest.
When small lenders worked kindly with those seeking loans, the Usurers anted up their bribes and squelched the small lenders. They even bought out the loans of the small lenders, forcing those who had avoided the Usurers into debt with them anyway. Before long, most of the citizens of the land were indebted to the Usurers.
Eventually, the burdens of the debtors were so great, they crashed. They could pay no more. The Usurers’ game had boomeranged back to them and they were no longer winning the game they had invented. Seeing their own debtors’ prison before them, their eyes grew wide with terror.
So the Usurers went before the king and said, “Have patience with me, and I will repay you everything.” And the king felt compassion on the Usurers and bailed them out. But the Usurers went and found their debtors who owed thousands and seized them and began to choke them, saying, “Pay back what you owe.”
So the debtors fell down and began to entreat the Usurers, saying, “Have patience with me and I will repay you.” The Usurers were unwilling, however, and went and took their houses, their cars, and all their belongings, and threw them out into the street.
For a time, the king permitted the Usurers to mistreat the debtors and did not require that their bailed out new wealth trickle down to the debtors. So the Usurers returned to their bribes, and they lured in new debtors. And the process started all over: the Usurers grew rich again, the debtors floundered again, and they stopped paying again, but now, the Usurers owed trillions.
But this time, the king, who had been paid by the indebted citizens, was also broke. For a time, he had a magician make money under a funny euphemism no one could pronounce. But it sounded something like “calculating easier,” and, naturally, everyone in the land of ease liked the sound of that. Eventually, the people discovered the euphemism only meant that the king’s money was worthless, so his wealth and his coveted bail-outs came to an end. Many had loved the land of ease and, when the ease turned against them, they met with despair.
Fukingschemer Land?
tldr
FuLand?
Ahhh pooh, you gave away the ending.
I wanted to catch the care bears infotoon.
You've got the best avatar on ZH! But is CM a freemason?
The funding is for the currency fallout from Japan....and all the associated problems that will snowball. Has anyone seen Japan lately? Just fell right off the radar screen didn't it! It is quite amazing how EVERY news outlet can be shut off! This is a real example of the "human condition" ! Libya and the OIL are front and center. DISTRACTION! Watch all the problems that crop up from the Japan. YEN.......Eye on it!
Certainly. The issue boils down to the global ponzi payment system, or rather, cascading cross defaults that could arise.
Mail from my financial advisor came today. According to this I just bought 2500 shares of EUO (euro ultrashort).
Considering they are always on the conservative side, this is a pretty big sign. They know something I dont.
my spidy sense tells me a dollar rally is in our near future...(I smoke though)
I think the dollar can rally an increasingly finite number of times. One day it will not just stay flat but fall. I do not think that has been priced in.
The IMF can't print, so it will be interesting to see how they organize this check kiting scheme.
The IMF will confiscate the Fed's SOMA assets and force the Fed to print money to buy them back.
Put your retirement or 401k in a self directed IRA and buy tangible assets with it and then GOV can't seize it so easily.
What threat to what international financial system?
As there currently exists no viable international financial system, there cannot by definition be a threat thereto.
Go figure, what self-serving hype this constitutes as simply another step to the next level of globalist looting.
This is why you are seeing "ghost towns" in China. The Chinese would rather use money to build Hard Asset, empty apartments, then be stuck with worthless USA Treasuries.
Never thought of it that way before. But it makes sense now after reading this excellent summary.
- shwing!
http://www.youtube.com/watch?v=szkgylvDYA4
As long as the buildings don't tip over. http://www.weirdasianews.com/2009/07/04/entire-highrise-building-tips/
Of course, if you are equiped with the same feet as Gregor Samsa, you won't mind.
Countries like Ireland need to rebel and show the world that It's the IMF who is broke, not their country. They need to impose their loans and austerity to keep themselves in business. Nobody needs these leeches.
Maybe the something big is a bailout of the US if the CONgress doesn't pass debt ceiling.
Wouldn't that be a hoot...the Benank funds the IMF, the IMF lends the money to US govt and imposes austerity that the congress is afraid to do.
Well, that's one way to run the check kiting. But I rather suspect some of the more high profile small fry dead beats will get slammed first.
Watch the yen. Tens of millions will need access to their money. Problem is Japanese banks dont have it, so these banks are going to need to sells assets to raise money.
There in lays the problem. So it seems that the IMF will raise the money first and if the Japanese banks need money; now they know where to get it. Why sell assets when you dont have to.
Will this work? It looks like it will be a good show.
thats a smart analysis, Asian banks are underfunded problems. Especially South Korea and of course China. I think a wave money will flow back to Japan to keep in liquid. money printing theory via equities staying bid holds validity. But it's going to be volatile.
I think Japan is finished as a global economic power.
Contrarian analysis says PM's are going down.
Is that it ? - am I supposed to make a investment judgement on this one sentence.
Do yourself a favour - if you were a Adult 20 years ago try to imagine yourself transported to the present day with a fist full of dollars - what would you do ?
Buy an Ipad? If i were an adult transported from the past, I'd pay every fucking cent I had trying to find a way back into the past.
We though are trapped in the moment and pretend it is now, but now is always changing so it can't be now, because now is now. Time travel makes me older. There must surely be a ratio between safety/security and tangible assets. As the world gets more whacked I find I'd rather own canned foods than stocks and certainly silver makes more sense than bonds or a fricking cd/ savings account.
spend the first few months researching all the great new advances that have been made in internet porn?
Everyone together now:
"Derivative debt explosions!!"
ding, ding, ding.. We have a winner.
the most likely explanation is that steven perkins has been hired by a consortium of irish brokerages as a trader, with marching orders of: "either get us outa this bullshit or take the whole fuking continent down with us, son." he also has been given diplomatic immunity and promised that he will not be extradited back to the City.
[from the Daily Finance]
The trader had spent the last weekend of June in 2009 on a rowdy
golfing trip with friends, according to regulators. When he returned
home, Perkins continued drinking but traded the fairways and bunkers
for the global Brent crude oil futures market. He stayed up all night,
and by the early morning of June 30th had racked up $520 million in
oil bets. Perkins was credited with losing $10 million for his employer and
briefly causing the price of oil on global markets to surge $1.65 per
barrel to an eight month high -- all in the course of two hours. At
one point, the FSA said, Perkins had built a long position
representing 7 million barrels of oil.
"Perkins' drunkenness does not excuse his market abuse," Alexander
Justham, director of markets at the FSA, said in a statement. "Perkins
has been banned because he is not a fit and proper person to be
involved in regulated activities and his behaviour posed a risk to the
proper functioning of the market."
so, i think everything is cool; the IMF may have known he was reading "Anonymous" press releases, too, and just jumped the freaking shark, here, sports loverz...
while being interviewed for the new position perkins stated that he was only a spree drinker, and that while in a blackout he has uncanny abilities to intuitively grasp the short-term offerings of spreads, spreads, and more spreads. then, as he was unable to verbalize any other thoughts, the irish trading consortium agreed that steven was "just our man! the perfect guy for the job."
im just waiting for the "boondock saints moment", when a couple people decide its time to rid the earth of this SCUM
Let me know when it's time to yell "shazam"!
Fukushima Funding Pool of Hyperinflation.
Endgame.
Interest rates ... at the very least
Is this #uckin nightmare ever going to end?
I used to watch in wonder, then disgust, and now it is merely bemusement. wry with the thought that somehow, someway it will get shittier, faster and weirder than I can predict or understand. Btw I'm the optimist in the family.
"Threat to International Monetary System"
Ok, who put the hit out on George Soros?
I couldn't afford it.
http://www.youtube.com/watch?v=c5_57PF7HwM&feature=related
Again, we receive confirmation that this is a game of 'All Or Nothing'. In saying Gold will hit $2000 or $3000, or that Silver will hit $125 or even $500, will be scoffed at by future historians or hindesight. If this keeps going, every currency across the planet will enevitably be backed by Gold & Silver just to stay competitive...10kg of Silver will buy you an apartment, 10kg of Gold will buy you a Farm.
I say, let the game continue, with every bail-out the future me gets wealthier...I already have my fortune in place, now, let it come-good.
Do you mean 10kg or 10oz? 10kg is valued at USD $460K right now, which should be enough to buy a small farm.
If by small, you mean 150 acres of very fertile, very nitrogenous soil, in the world capital of legumes, soybeans, and sugar beets, then yes, it will.
And I know this because I've been negotiating transfers and pooling and banking such properties for clients for some time now.
Equity markets are going to crash in short order.
There will be a MASSIVE amount of redemptions shown around this time, when you all look back, from equity pools.
Get on the right side of this trade.
It's all a fucking house of cards, just like in 1999 and 2007. No difference.
I know this won't be popular or that many are going to agree with me, but the crash will take almost all assets down with them.
Tyler keeps pasting the St. Louis Fed M2 chart, but no one will go further and speak about the fact that a massive chunk of those 'digital dollars' will never make it into circulation, as creditors have already liened or attached to them, or there are offsetting losses in terms of unrealized losses in other asset classes (e.g. real estate; e.g. derivatives) that will offset such shown 'money supply'.
The liquidity crisis that is unfolding now is the biggest in the history of mankind.
A lot of this has to do with the Japan crisis. When the 3rd largest economy suffers the crisis it has, with more to come, it fucked the plans of Bernankincide. His free reign is over.
Hmmm...I think Japan has given BSB another chance to go a-printin'...and I think he will. Not gonna deny that the reserves are liened, I think that as well. But I think a hyperinflationary blow off, likely in Japan now, happens first. July/August should see serious pressure as QE 3 is trotted out.
I don't want to be premature to the party (or anything else), but futures are dropping on Portugal's downgrade to junk (junkier?) status.
I bet a fin that Merkel refuses to go along with the grand plan, which is why the IMF is going to be the ringer apparently, and that things get botched quite badly.
But as the Zen Master likes to say:
Hadn't even thought about that angle. Nice.
There will NEVER be another crash, never!
It just goes on and on and I keep buying physical on and on. Impossible for even Steven Spielberg to make this up.
OT : Anyone else having issues with IE9 and the comments area? Have to use the "Compatability View" for it to work as expected....
I was (with IE8) until I cleared out a few rootkits and trojans last night. Are your google searches also redirecting to random sites? (mine were, but no more).
Spain is gone, a trillion dollar economy about to go FUBAR.
So, what does it cost to effectively pin USDJPY at 81.00 for four days?
GODZILLIONS!!!
+ARRRRRRRRR!
People, people... the NWO just happened. Did you notice? The UN voted to go to war and the US enforsed it. No congress involved. The US as a nation state is an illusion. Central banks/IMF and UN are what governs the world.
from bloomberg:
http://www.bloomberg.com/news/2011-03-25/eu-leaders-cut-future-rescue-fund-s-startup-capital-after-germany-balks.html
EU Cuts Future Aid Fund’s Start-Up Capital After Germany BalksI think I should rethink my position and hedge with a couple of kilos of cocaine.
It's comforting, warm and fuzzy, that the powers that be, will always make sure that I will never "lose" in the stock market ever again... I am guaranteed prosperity no matter how poorly managed or how much illegal activity proceeds. What moral hazard? I am therefor Ironman forever, no matter the fool. For I shall never lose because the powers that be will always get my back!
Has he lost his mind, can he see or is he blind...
-- Irving Fisher, Professor of Economics, Yale University, October 16, 1929.
Nice to see someone use "lose" instead of loose. Sold half of my SLV options today and bought a 24' boat, White diamond pickup, good bag of hay, eight flats of beer, two cases of very good wine, and enough tenderloins to keep my fishing buddies happy for a meal or two. Fuck Berskank and all the rest. We going fishing.
Besides, I sold my company a month ago, own a small farm, have PM's, oil stocks, and have a great family. If the end is coming, fuckin bring it on. Oh, I forgot to say we have guns too but if we are burning hay we really don't want to shoot anybody cause we're pretty laid back and also it's a bit gross cleaning that shit up.
You sir are the new model citizen.
Congrats and good fishing.
Good thing we have that resolution authority in place and ready to go.
endgame trade is probably a few days out...
Amazing how beer, especially elephant strength
carlsberg beer sharpens your perception.
We are fucking doomed...
Yes, Pres. Obama would End the Fed.
Though, not for the same reasons as for those of us devoted to individual liberty, i.e. eliminating the deception and wealth transfer that is the hallmark of fiat currency, allowing market-determined interest rates, reduce banking corruption, return monetary policy back to money---honest independent intrinsic gold/silver money---as per the US Constitution, etc.
Yes. President Obama may end the Federal Reserve. In ending the Fed, Obama may transfer the Fed's mandate of setting US monetary policy to the US Treasury, a department under the Executive Branch. Following that, all TBTF banks would be nationalized, their books safe from audit.
In so doing, the Executive branch of government would effectively control nation's purse strings---not Congress---via credit creation and the magical fiat printing press.
I can't imagine an anti-colonialist such as Obama appreciates very much the US Federal Reserve exporting painful inflation to nations around the globe. Besides, many of his base supporters are anxious to grab banking away from the bankers and give control of it to the government.
Incidentally, what's up with that new unusual "2009" $100 bill, release date cancelled(2-2-2011) with no new release date announced. These are year issue 2009 notes! Might be nothing.
Need to change the name on the banknote to Federal Reserve Shekel.
Fed don't want the population to have physical banknotes because if they don't have money there can't be any inflation.
GE reacts anrily as Pentagon wants to shut down many projects.
ARE WE NEARING THE END OF US HEGEMONY. Never ever do I rememeber such a situation where Pentagon is beggin for cash
http://dawnwires.com/investment-news/us-military-runs-out-of-cash-again-general-electric-reacts-angrily-and-vows-to-waste-even-more-tax-payer-money/
EndtheFed, So in the imminent equity crash, shiny falls too?
I'm not predicting that, but I wouldn't rule it out.
I'd far rather have PMs than stock certificates or bonds in such a case. History would be on my side.
yah, thanks, need a bit of $$ for the short term is all. Keep talkin', you know more than most.
If shiny dies in your scenario, will it be resurrected? And just off the top of your head can you give me a percent to have of cnd buckaroos vs shiny. thanks again, this collapse is killing us know-nothings!
China says gold prices going to record high. We now know who is buying
http://dawnwires.com/investment-news/china-says-gold-price-to-go-to-new-records/
What kind of mornic country gets IMF loans when they can just get 0% out of the FED's discount window.
$10,000 for free. Do these guys have a printer as well:
http://www.etoro.com/
Kinda shows what the real value of a "dollar" is. Free.
Etoro for president.
Having run businesses for thirty years, I was faced with dilution issues more than once. When retail dilution becomes too much of a greased pig of negative public relations to handle, you turn to wholesale dilution... it's like off-balance-sheet financing, but the global monetary non-sovereign-system version. My instinct is this will show up somewhere in the Swiss Franc.
Remember El-erian's comment last week that implies we're still operating in a vacuum. If we are, where else could this dilution be heading if not the Swiss Franc?
I smell Basel in this recipe.
Dave Harrison
www.tradewithdave.com
Translation: IMF Prepares to Pitch World Currency.
Thugs like Paul Wolfowitz at the World Bank were installed years ago by Bush II, just in time for this crisis. (Who very much saw it coming!)
Ill bet many thought "Mission Accomplished" had to do with Iraqi distraction.
Tails YOU lose again, as the fraud moves off shore so no one can be prosecuted under a new world order.
"Excuse me... was that just gas, or did the IMF actually pass a threat?" PIMCO, CEO
http://tradewithdave.com/?p=5833
I was perusing some posts of frustration here today, and many say 'just wait and take a low profile'. No offence, but when this blows up on us, shouldn't someone think of some non-violent action to take? Like organising a protest outside of the Federal Reserve in DC when they have a FOMC or something when the cameras will be on a The Bernank getting out of his limo to attend and subsequently being heckled by a mob of well-educated sign-toting folk. Just a thought for now, cause I'm certain that the tea parties don't know who is the real enemy quite yet. We do however. I'm serious and don't care if you 'junk' me or not.
All of this was knowable as far back as 1974. It was easy and cheap to attend college and professional school and to stay out of debt. There are those baby boomers who saved a minimum of $2 million or more. Health Insurance is much more affordable and the care better in Europe. Just move.