IMF Says It Is Prepared To Feed The World's Hungry (While Invoicing US Taxpayers For Its Services)

Tyler Durden's picture

In a report released earlier summarizing the fund's findings from the irrelevant G-20 meeting over the weekend, "Global Economic Prospects and Policy Challenges", the IMF finally acknowledges what pretty much everyone has been warning about for over two years now. Namely: "From an external perspective, however, there is concern that quantitative easing in the United States could result in a flood of capital. In economies where recovery is already well established, policymakers will need to pay increasing attention to building inflationary pressure. Central banks should continue to stand ready to address liquidity problems in the banking sector, particularly in the euro area." Actually the liquidity area that should be addressed is that in the 3rd subbasement of the Marriner Eccles building where the printers work on full blast 24/7. Furthermore, the IMF points out another glaringly obvious factoid of today's global ponzi economy, namely the Chinese property bubble: "Residential real estate prices in some of China's larger cities have risen rapidly since the crisis, spurred initially by stimulative policies aimed at easing restrictions on real estate lending and subsequently by strong income growth, high savings, and limited alternate investment vehicles. While it is difficult to predict how significant the stress from potential property price correction would be, if these risks are realized, there could  potentially be global ramifications." But arguably the most interesting observation in the report is that the ongoing tsunami of Fed-driven food price surges across the world, in most cases leading to outright revolution, will end up being invoiced to... you - dear US taxpayer.

"The recent food price increases come in the wake of the deepest crisis since the Great Depression, when countries are more vulnerable and have, in general, less fiscal space. In addition to the inflationary implications, the rapid increase in food prices may  have adverse social implications, particularly in low income countries (LICs). The IMF also stands ready to boost its financial support to LICs and other member countries to help them stem the adverse effects of rapid food price increases."

Which means that soon the IMF will be subsidizing countries around the world, all of whom will adopt the Mutual Assured Destruction made so famous by our lunatic Treasury Secretary, and tell the IMF (whose number one sponsor happens to be the US), that either they get bailed out, or bloody revolutions will follow. And yes, America will foot the bill for that too.

Key highlights from the report:

On QE:

With inflationary expectations well anchored, accommodative monetary policy in major advanced economies remains appropriate for now. High unemployment and large output gaps are keeping wages and inflation expectations in the major advanced  economies in check, notwithstanding large increases in food and energy prices. Continuing monetary policy accommodation is thus the right policy from a domestic perspective, considering also that the recovery is expected to remain sluggish going forward. From an external perspective, however, there is concern that quantitative easing in the United States could result in a flood of  capital. In economies where recovery is already well established, policymakers will need to pay increasing attention to building inflationary pressure. Central banks should continue to stand ready to address liquidity problems in the banking sector, particularly in the euro area.

On Chinese property crash:

In addition to well-known downside risks associated with real estate in major advanced economies, an emerging risk to the global recovery stems from a potentially steep price correction in Chinese property markets. Residential real estate prices in some of China's larger cities have risen rapidly since the crisis, spurred initially by stimulative policies aimed at easing restrictions on real estate lending and subsequently by strong income growth, high savings, and limited alternate investment vehicles. Over the past year, the authorities have stepped up efforts to rein in property prices, recently announcing a range of measures, including raising the minimum down-payment for second-home buyers and enforced a 5½ percent business tax on properties sold within 5 years. Given the government guarantees in place, financial sector risks threaten the fiscal outlook. While it is difficult to predict how significant the stress from potential property price correction would be, if these risks are realized, there could potentially be global ramifications.

And most curiously, on what could be the headlines of tomorrow: "how the IMF fed a hungry world":

Sharp food price increases pose a particular challenge for many emerging and developing economies. The recent food price increases come in the wake of the deepest crisis since the Great Depression, when countries are more vulnerable and have, in  general, less fiscal space. In addition to the inflationary implications, the rapid increase in food prices may have adverse social implications, particularly in low income countries (LICs). To minimize the social and economic costs from rapid food price increases, policymakers would need to: (i) avoid discretionary policies, such as export bans and taxes and price controls, that  seek to insulate domestic markets, as such actions can increase world food price volatility; (ii) accommodate first-round effects, but be ready to tighten policies to avoid second-round effects that could result in persistent inflation; and (iii) ensure that the poor are protected, ideally through targeted and cost effective social safety net programs. The IMF also stands ready to boost its  financial support to LICs and other member countries to help them stem the adverse effects of rapid food price increases.

How providing additional capital does not lead to increasing local inflation in said "LICs" we fail to comprehend. But we will leave that logic to someone with an economics Ph.D.

Full report:

 

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unwashedmass's picture

 

what's to worry? Bennie already has the press running to keep the market up, he'll just run a few more 100B to hand out worldwide.....

what we should concentrate on is keeping those peasants in wisconsin under control.....they are getting WAY WAY too much air time...

before long someone is going to start talking about why the pension funds are empty....and bring up things like, oh, i dunno ,,,, MBS....

Sudden Debt's picture

I don't know... Africans have a pretty expensive taste...

Mr Lennon Hendrix's picture

MBS...pensions....silver supply/demand...oil production...fiat...I wouldn't call it the perfect storm, I would call it the perfect sh*tstorm.

tony bonn's picture

"....flood of capital..."

fuck you lying asshole banksters.....debased currency is not a flood of capital....it is a flood of putrid donkey shit....

Weisbrot's picture

we may not be that far away from being egypt or crapistan

LFMayor's picture

They can eat flies, I know they have plenty of those since I've seen it on the starving kid TV commercials.

topcallingtroll's picture

Actually in those countries they look forward to termite mating season, all that flying protein tastes sweet and sour and has a crunchy texture. Best served raw.

I have been a student of teotwawki for a decade. I can find food anywhere!

LFMayor's picture

LOL, yeah doc, I've actually tried roast termites that some missionaries smuggled in back in. (that was back in the 80's).  Tasted a lot like roasted soybeans, not bad at all.  Also watched a documentary where they were eating the Lake Victoria versions of mayflies, too.

When teotwawki hits, these populations are gonna drop everywhere (like flies!) because our food subsidy to them will dry up.  Wendigo will move into the warm climates, even. 

Sudden Debt's picture

Once ate bugs in Thailand after a binch drinking contest.

I don't fully remember the details, but in the morning I still had their little feet in my mouth and a pretty discusting taste.

vxpatel's picture

And Americans can eat the fat from their neighbors back, plenty to go around in the land of the fat lazy dumb consumers!

vxpatel's picture

And Americans can eat the fat from their neighbors back, plenty to go around in the land of the fat lazy dumb consumers!

potatomafia's picture

Geez, I didnt know the IMF had a farm..  Where is that located?

TorchFire's picture

They do...they have named it "Monsanto". Location: Planet Earth. Once they get the whole world eating their garbage GMO slop, they will throw the kill switch and starve the people....er...i mean the useless eaters. The Elites with their seedbanks in Antarctica will be ok though. It all sucks.  Just look at what Monsanto is doing to the indigenous cotton grower in India. Evil bastards the whole fuckin' lot. 

Sudden Debt's picture

Next to the soylent green factories.

 

Josh Randall's picture

"Let them eat GMO"...

MrSteve's picture

Are genetically modified organisms keyed to certain genetically-altered pesticides and fertilizers or just patent royalties or all of the above?

Segestan's picture

Good place to start fixing these problems....Abolish the IMF and throw their ass' out.

Scottj88's picture

How kind of the IMF...

This will go well with their desire to host the global currency too.  Too bad they own all this toxic paper debt as a proxy for debt....

Inflation coming soon... prepare yourselves...

http://thehardrightedge.com/troubledwater/

Bob Sponge's picture

I would not be surprised to see the central bankers/IMF try to "help" the world via a one world currency.

Snidley Whipsnae's picture

They can send me all the 'invoices' they like...I will send my invoices to the Fed since they are printing my money...

buzzsaw99's picture

Will the imf use helicopters to re-distribute the clownbux?

Sean7k's picture

Global food stamps- get your microchip here...

the not so mighty maximiza's picture

All invoices will be returned to sender.  American tax payers don't live here anymore.

plocequ1's picture

Thank god. I havent had a good meal in days. Where do i sign up? I like Pancakes

Quinvarius's picture

So, we are going to create more money to give to people to buy food?  That ought to stop the inflation.

silver_serf's picture

+1

now we're getting it, just needed more money, fools!

Judge Judy Scheinlok's picture

This is a dire prediction and deserves appropriate typesetting.

Food stamps for the world, bitchez! What's next IMF Section 8?

silver_serf's picture

Next they will make the WI teacher's union face the starving 3rd world for their fair share of gubn'mnt chedda

Judge Judy Scheinlok's picture

What's better than a good old fashion urban-elementary American edubacation? Maybe Obama could have his crack dealer point man, Jayzee show up to do the pledge of allegiance.

Looks like the US taxpayer is going to have to foot the bill for most parts of this New World Order thingie.

Cleanclog's picture

Time to reread "Confessions of an Economic Hit Man" by John Perkins.  Very telling book on how IMF, World Bank, and the like subjugate those they help into indebtedness they can't escape and expand wealth gaps within those countries.  Now coming to the developed world I guess.

ivana's picture

yes yes yes

+7653126298

But these days almost everybody knows the game.

That's why this bs crisis will last for years and years

Judge Judy Scheinlok's picture

I just dialed 765-312-6298 and a girl answered. Is that you ivana?

Mae Kadoodie's picture

China announces enlistment of Bob Geldorf to spearhead All Star studded cast of musicians and entertainers for Live Aid ll: Feed the Americans.  Ministry of Food very concerned that if Americans are starving they will not be able to pay their debt.  More to follow.

FunkyMonkeyBoy's picture

The tables are turning, and about time too. Time for the west to subsidize others leisurely lifestyles now. Let's see if the average U.S. citizen is capable of doing real productive work and not those token non-jobs they've been performing for the last few decades.

LFMayor's picture

Token non-jobs?  You mean like inventing most of this fun shit that keeps your miserable lifespan prolonged past 38 years?  Or how about keeping the sea lanes open and free for trade, so that all that fun shit can actually make it to these savages?  Like pharma, ag (often given as "aid", the very goddamn internet that we happen to be communicating on...  but here I am repeating a diatribe I used a couple days ago. 

Since you leftists cannot be taught, you'll just have to be shown instead.  How I pray for the great economic collapse, the greatest and harshest lesson ever taught to useless eaters, world wide and live!  So when you're starving in the near future, and/or your more populous international neighbors are busy pillaging your neighborhood, I'd like you recall your dumbass statement and remember that here in flyover country, many useless Americans are growing so much food that we burn it in our vehicles, drink it for pleasure and even make whole kernel cat litter so our overweight pets can shit all over it.

melachiro's picture

You owe me a keyboard...great friggin' response but, you caused fluid release through my nose.

 

...f'ing moral relativistic lefties

nufio's picture

true US has a lot of technological advances to its credit but if you look at numbers i think the majority of american population are doing "token non jobs".

american college graduation statistics: http://nces.ed.gov/programs/digest/d08/tables/dt08_271.asp?referrer=list

nufio's picture

 


   Total ..................................................................................... 1,524,092 Business ........................................................... 327,531 Social sciences and history ........................................ 164,183 Education ............................................... 105,641 Health professions and related clinical sciences ............................ 101,810 Psychology ......................................... 90,039 Visual and performing arts ............................... 85,186 Biological and biomedical sciences ....................................... 75,151 Communication, journalism, and related programs .............................................. 74,783 Engineering ........................................... 67,092 English language and literature/letters ....................... 55,122 Liberal arts and sciences, general studies,   and humanities ................................. 44,255 Computer and information sciences ........................... 42,170
tmosley's picture

For every one of the productive workers you mentioned, there are two support workers (like barbers, firemen, etc) who are needed, and five government employees, five private employees to deal with the government employees, and five salesmen/women who are not.

The GP was referring to the latter group.  Yes, there are some scientists and factory workers still producing in this country, but they are getting fewer and fewer as time goes on.

 

melachiro's picture

TM,

If that was who he was talking about then I stand corrected.  As a small business owner in healthcare I am fully aware that I produce nothing but a service.  Without production and usage of our natural resources in a sound way I and WE are all screwed.

robertocarlos's picture

It's still disgusting that you grow corn so a cat can poop on it. At least Africa has proper cats.

cranky-old-geezer's picture

IMF Says It Is Prepared To Loot US Taxpayers Under The Guise Of Feeding The World's Hungry (While Invoicing US Taxpayers For Looting Them)

Fixed it.

You're welcome.

Sudden Debt's picture

Thats the last resort before it all crashes.

My silver never shined so nicely :)

Seasmoke's picture

working on a chain-gang , never looked that bad