International Monetary Fund

Lost Faith In Central Banks And The Economic End Game

If the IMF is engineering a financial crisis in Europe in order to gain more power and influence, why wouldn’t the Fed be doing the same for the IMF in America? Just as the international bankers use stimulus and rate policy as tools, so, to, do they use chaos.

Frontrunning: April 6

  • Cruz, Sanders score decisive victories in Wisconsin (Reuters)
  • Clinton Can’t Get to New York Fast Enough After New Sanders Win (BBG)
  • Trump, Clinton Have Single-Digit Leads in Pennsylvania (BBG)
  • Panama law firm says data hack was external, files complaint (Reuters)
  • ‘Panama Papers’ Puts Spotlight on Boom in Offshore Services (WSJ)
  • Barclays partners with Goldman-backed bitcoin payments app (FT)

Frontrunning: April 5

  • Panama Papers: Biggest Banks Are Top Users of Offshore Services (WSJ)
  • Panama Papers probes opened, China limits access to news on leaks (Reuters)
  • Credit Suisse CEO Distances Bank From ‘Panama Papers’ (WSJ)
  • Fed's Evans says market more pessimistic on U.S. rate hikes (Reuters)
  • IMF's Lagarde Says Risks to Weak Global Recovery Are Increasing (BBG)

"Risk Off" - Global Stocks Slide As Yen Surges To 17 Month High; Bund Yields Plunge

The market's slumberous levitation of the past month, in which yesterday's -0.3% drop was the second largest in 4 weeks and in which the market had gone for 15 consecutive days without a 1% S&P 500 move (in March 2015 the sasme streak ended at day 16) may be about to end, after an overnight session, the polar opposite of yesterday's smooth sailing, which has seen a sudden return of global risk off mood.

Steve H. Hanke's picture

Authored by Steve H. Hanke of the Johns Hopkins University. Follow him on Twitter @Steve_Hanke.

Over the weekend, the New York Times reported that WikiLeaks transcripts suggested that the International Monetary Fund (I.M.F.) had discussed the possibility of hatching nefarious plots against Greece. Immediately, Prime Minister Alexis Tsipras accused the I.M.F. of trying to “politically destabilize Europe.”

Germany To Greece: No Debt Relief For You

Whether or not the IMF intended to use a Greek credit event to destabilize Europe as the greek government first alleged, or whether this was "nonsense" as Lagarde responded to Tsipras letter, is irrelevant - ultimately the underlying premise was whether or not Greece gets debt relief, something the IMF has been insisting on since the third bailout package. And as is well-known, it was Germany - not Greece - that stood in the IMF's way. So after a terse weekend in which relations between Greece and the IMF devolved once again to frigidly sub-zero levels, moments ago Germany chimed in with its position, which can be summed up in another familiar word: "nein".

Wikileaks Reveals IMF Plan To "Cause A Credit Event In Greece And Destabilize Europe"

In a leaked transcript, IMF staffers are caught on tape suggesting that a threat of an imminent financial catastrophe was needed to force other players into accepting its measures such as cutting Greek pensions and working conditions, or as Bloomberg puts it, "considering a plan to cause a credit event in Greece and destabilize Europe."

Greece Demands Explanation From IMF Over Leaked Transcript

Greek politicians wasted no time in seeking a response from the IMF over the leaked transcript released earlier today by Wikileaks suggesting the IMF may threaten to pull out of the country's bailout as a tactic to force European lenders to more offer debt relief, and which according to the Greek government was "interpreted as revealing an IMF effort to blackmail Athens with a possible credit event to force it to give in on pension cuts which it has rejected."

IMF Politely Asks China To Explain Exactly How Large Its FX Forwards Book Is

In the wake of the August 11 "surprise" yuan devaluation, all anyone wanted to talk about was the rapidity with which China was liquidating its FX reserves. Before long, everyone realized that the headline number was a proxy for capital flight out of China. That made Beijing uncomfortable and so, the PBoC found more "creative" ways to intervene in FX markets. Now, the IMF wants clarity. 

Our Economic Growth System Is Reaching Its Limits In A Strange Way

Growth now is slowing because of all of the entropy issues involved. People in China cannot stand any more pollution. Too many laborers in developed countries are being marginalized by globalization and by competition with ever more intelligent machines that can replace much of the function of humans. None of this would be a problem, except that we have a huge amount of debt that needs to be repaid with interest, and we need commodity prices to rise high enough to encourage production. If these problems are not fixed, the whole system will collapse, even though there seems to be a surplus of energy products.

Will A Trump Presidency Really Change Anything For The Better?

Whatever Trump is, his popularity does indicate a rising tide of discontent within the U.S.  The damage to America has for the most part already been done, and there will be no avoiding the consequences. That said, how we rebuild can still be determined. No political leader including Trump will ever be able to heal the American system or the American psyche, but the efforts of millions of independent and liberty minded Americans can. We have a long and terrible struggle ahead of us, but to look at it from an “optimistic” perspective, at least Americans are becoming sick of the status quo. That is a start.

How Lenders Control The Future Of Oilfield Services

For the thousands of new entrants into the oilfield services (OFS) industry in the past 15 years - both workers and companies – if you didn’t know what senior secured lending covenants were a year ago, you sure do now. Many new borrowers are enduring a painful education on the legal implications of the lending documents they signed. There is said to be lots of capital on the sidelines looking for deals. OFS owners and managers up against a debt wall should consider finding some.

Central Banks Are About To Leave Fiat Addicted Stock Markets In Agony

Many investors today are not very familiar with market history and tend to live only in the day-to-day mainstream narrative while watching little red and green graphs move up and down. This is not so much an issue in a relatively stable economic environment. The problem is, today we live in the most unstable economic conditions possible.

Global Central Banks Continue Longest Gold-Buying-Spree Since Vietnam War

While "greed was good" in the '80s, it appears "gold is good" in the new normal. As much as the barbarous relic is despised by all the mainstream money-peddlers in public (aside from those who have left the familia like Alan Greenspan), it seems to be loved in private. Central banks have been net buyers of gold for eight straight years, according to IMF estimates, the longest streak since the first troops were deployed in The Vietnam War.