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IMF in transition, European fears rise
The
downfall of DSK, and the implications for Europe have not been priced
into the European debt markets fully yet, in my opinion. The era of a Euro-centric focus at the IMF under DSK is about to change.
The IMF has announced that its current temporary Managing Director
will be retiring at the end of August. This will leave the IMF with out
its two most senior bankers as the world transitions from a QE 2.0
reality into an unknown economic future. This also puts into play, who
will be in charge of directing the focus of the IMF in the future.
The jockeying for who replaces DSK at the IMF has already started,
with PIMCO’s co’CEO releasing one of his instant OpEd pieces announcing
his disinterest. What is clear, is that the primary leadership at the
top of the IMF is going to change suddenly, and with it potentially, a
new focus for the IMF. Historically, the IMF focused its resources on
smaller third world nations that needed access to capital. A return to
these grass roots would have serious implications for Europe.
This has the role of the IMF in doubt in Europe, as a new Managing
Director from the third world or North America, would have a different
focus for the funds, than a Euro-Centric leader has had. In fact, there
are already arguments that the IMF has deployed to much capital in
Europe already. It was not supposed to bail out economic unions, which
is what it has morphed into lately.
In fact, with the changes coming up in the leadership of the IMF, the
continued role in any new specific bail out is in doubt. This is
already noticeable, as the IMF quickly rolled out funds for Ireland that
had been on hold, along with signing off on the Portugal bail out this
summer, before they have a new government voted in. The European Desk at
the IMF is quickly funding its current mandates, however it may or may
not have a future role in new bail outs. Specifically, of nations it
has already bailed out once during this crisis.
The
pressure on European leaders to arrive at a solution to their many
economic issues is increasing as time runs out on the current crop of
bail out nations. That is, when the original bail outs were announced,
there was expectations of future debt issues to meet the proposed
numbers. These debt issuing events have been pulled from the market as
the risk of default has grown in Greece, causing the cost to insure
against a default to increase.
The IMF, which has its own quasi currency called SDR’s (Special
Drawing Rights), has been proposed as a replacement for the US dollar as
the reserve currency of the world. The idea of growing the IMF into a
Super-Senior Central Bank to the world with leadership provided by
European centric bankers is now on hold.
What happens next, and who replaces whom at the IMF, will have
monetary implications for everyone for decades. It will be interesting
to see if China decides to pour real money into the IMF to try and gain
control of its focus.
What hasn’t happened, is an end to the need of the IMF. That is, the
world still needs an organization to help bail out economies that have
lapsed into economic insolvency.
In the past, the US provided the largest funding slice and was able
to direct the politics of how those funds were disbursed. However,
since 2007, under DSK, the IMF has become focused on European bail outs.
If the IMF is distracted or unable to bail out the European
Governments in the future, it will be up to the European leaders to
figure out their own solutions to their own problems. Historically,
this has not ended well.
This article was orginally published at www.JackHBarnes.com additional video content, including a video interview with ZH's own Miles Kendig is available at www.MacroContrarians.com:5555 (port routing is being used while the site is in beta design)
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Gaddafi might be looking for a new gig.
So let me get this straight...
...It takes a womanizing arrogant banger prick to rob taxpayers of their hard earned cash to bail out other bankers?
Give me a fucking break.
Any fool could do that drunk and half awake as long as they were a gutless worm with no soul.
According to the IMF, Libya’s Central Bank is 100% state owned. The IMF estimates that the bank has nearly 144 tons of gold in its vaults. It is significant that in the months running up to the UN resolution that allowed the US and its allies to send troops into Libya, Muammar al-Qaddafi was openly advocating the creation of a new currency that would rival the dollar and the euro. In fact, he called upon African and Muslim nations to join an alliance that would make this new currency, the gold dinar, their primary form of money and foreign exchange.
Any thing else is noise.
Nice to see the French Citizenry rallying to DSK's side on this one.
It just goes to prove that the American citizen is not the only group of chumps to the "power elite".
Perhaps they should give him a medal for liberating this and the other women.
These guys.
http://www.bis.org/cbanks.htm
The IMF are training grounds for the B students...
Who benefits most from DSK being out?
Sarkozy.
French poll today returned 70% believe DSK was setup.
Man with wealth, power and almost certain to be next president would do this?
What part of power struggle do you not understand?
Goldman Sachs will direct the monetary policy of IMF, as they do the USA
http://www.automatedtrader.net/real-time-news/77404/eurozone-finance-min... head of IMF will be the Mario Draghi
He was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005).
http://en.wikipedia.org/wiki/Mario_Draghi
nice one, akak.
I'm wondering if white men should ever be given power or money again. As soon as you give them power, they abuse it. If you give them money, they use it to steal more. If you give them power and money, they run around naked slapping underlings and cleaning ladies with their junk, they take down whole countries, they rape, engage in pedophilia, and build constructs and legal systems that prevent their money and power from ever being taken away.
Hmmm... maybe the Han people, for a 1000+ years or so (as they're so fond of reminding those white barbarians?) no abuses of power or money in China, Korea or Japan.
NO abuses of power under the Han?
What about Chin Shi Huang Di, and his totalitarian police state, and the millions of laborers he sent to their deaths building just the Great Wall as well as his own vainglorious tomb?
What about the chaos, misery and ruin of the Warring States Period?
Or the world's very first fiat paper money, and the economic destruction it repeatedly wrought before wisely being abandoned over a century after its first introduction?
Power abuse is inherent in the criminal enterprise known as government.
No no no...this is a big misunderstanding. The guy was watching a prono and the title had something like MILF in it and he thought it was Maids I Like to Fondle... his interpreter must have been watching the same thing and spankin the clown in the other room.
I don't think the problem is unique to 'white men" (by which I assume you mean Euro-Americans) at all --- they have simply had much longer to hone their kleptomaniacal skills and neo-feudalistic debt bondage techniques, and to refine and entrench the sociopathic elite power structure that allows those skills to flourish to their maximum degree.
Of course, you're right. I was just pissed off.
Corrected.
So, an IMF pervert will be the black swan that takes down europe. Unreal world. You can't make this stuff up.
He wasn't a pervert, he was entitled. And she was asking for it, all dressed up in that cleaning uniform and all.