41 IMF Bailouts And Counting – How Long Before The Entire System Collapses?

Tyler Durden's picture

Submitted by Michael Snyder via The Economic Collapse blog,

Broke nations are bailing out other broke nations with borrowed money.  Round and round we go - where we stop nobody knows.  As of April, 41 different countries had active financial "arrangements" with the IMF. 

IMF Loans (in thousands of SDRs)

Sometimes they are called "bailouts" and sometimes they are called other things, but in every single case they involve loans.  And most of the time, these loans come with very stringent conditions.  It is a form of "global governance" that most people don't even know about. 

For decades, the IMF has been able to use money as a way to force developing nations to do what it wants them to do.  But up until fairly recently, this had mostly only been done with poor nations.  But now an increasing number of wealthy nations are turning to the IMF for help.  We have already seen Greece, Portugal, Ireland and Cyprus receive bailouts which were partly funded by the IMF, Spain has received a bailout for its banking sector, and as I noted yesterday, it is being projected that Italy will need a major bailout within six months.  How long can this go on before the entire system collapses?

Well, that would depend on how much money the lender has.

And so where does the IMF get their money?

The IMF gets their money from a bunch of nations that are absolutely drowning in debt themselves.

The IMF is funded by "wealthy" nations that dominate the global economy.  The following is how Wikipedia describes the IMF's quota system...

The IMF’s quota system was created to raise funds for loans. Each IMF member country is assigned a quota, or contribution, that reflects the country’s relative size in the global economy. Each member’s quota also determines its relative voting power. Thus, financial contributions from member governments are linked to voting power in the organization.

These are the five largest contributors to IMF funding...

  • United States - 16.75%
  • Japan - 6.23%
  • Germany - 5.81%
  • France - 4.29%
  • UK - 4.29%

But those countries are in trouble themselves.  The U.S. has a debt to GDP ratio of over 100%.  Japan has a debt to GDP ratio of over 200%.

The truth is that these countries are funding the IMF with borrowed money.

So what happens when the contributors run out of money and can't contribute anymore?

All over the globe, an increasing number of countries are reaching out to the IMF for help.  For example, on Thursday we learned that Pakistan is getting a new bailout from the IMF...

Pakistan and the International Monetary Fund have reached an initial agreement on a bailout of at least $5.3 billion.


Pakistani Finance Minister Muhammad Ishaq Dar and IMF mission chief Jeffrey Franks announced the agreement at a press conference Thursday.

And the new government in Egypt is hoping that the revolution that just occurred will not stop the flow of IMF funds...

In recent months, a handful of neighboring countries such as Qatar have been keeping Egypt’s economy afloat by loaning the country’s central bank cash. That has bought Morsi government time to delay implementing the politically-sensitive measures the IMF has sought as a precondition before it gives Cairo a $4.8 billion credit line. In particular, the IMF had said that Egypt must raise taxes and begin phasing out fuel subsidies.


It’s not the only cash at stake. Other international donors have vowed another $9.7 billion for the country once the IMF program is in place. Roughly $1.55 billion in bilateral aid from Washington could also be held up: under U.S. law, the administration can’t loan money to countries where the military is involved in an unconstitutional change in government.

But what often happens with these bailouts is that the "conditions" that are imposed prove extremely difficult to meet.  For example, Greece has not implemented all of the "reforms" that they were ordered to implement, and so the flow of future funds may be threatened...

As Greece looks set to miss a key reform deadline set by international lenders, which could jeopardize further financial aid, a Greek government minister said it wasn't Greece's fault that it couldn't live up to the demands of a flawed bailout program.


"There are failures [by Greece],but you assume that the program that has been effectively imposed on us is perfect, which is far from the case," Nikos Dendias, minister of Public Order and Citizen Protection, told CNBC on Thursday.


His comments come after Greek finance ministry officials said on Wednesday that Greece would not meet targets on reforming its public sector by the deadline set by international lenders, putting further financial aid in jeopardy.

Once a nation gets hooked on bailout money from the IMF or from other international sources, it can be very hard to get off of it.  But that is what these globalist organizations like - they want to be able to use money as a form of control.

As we saw with Greece, sometimes a nation will need bailout after bailout.  And it appears that is also going to be the case with Portugal.  The Portuguese government is on the verge of collapsing and their financial situation is being described as "very fragile"...

Portugal had been held up as an example of a bailout country doing all the right things to get its economy back in shape. That reputation is now harder to sustain and even before this latest crisis, the International Monetary Fund reported last month that Lisbon's debt position was "very fragile".


Coming soon after the near-collapse of the Greek government, which has been given until Monday to show it can meet the demands of its own EU-IMF bailout, the euro zone may be on the brink of falling back into full-on crisis.

Right now, Portuguese bond yields are absolutely soaring and the Portuguese economy is rapidly heading into depression.

Portugal is going to desperately need the assistance of the IMF.

But what happens when the nations that primarily fund the IMF start failing themselves?

The U.S. is a complete and total financial disaster and so is Japan.  Much of Europe is already experiencing a full-blown economic depression and even China is showing signs of trouble.

So if the "wealthy" nations fail, who is going to be there to help the "poor" nations?

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I am Jobe's picture

More wars needed. Someone please wake up the Joint Chief of Staff to prep for war. meanwhile I am golfing the rest of the day.

B2u's picture

Lunch time, Hooters has great food.

Bam_Man's picture

Yeah, I go there for the food too.

THX 1178's picture

Tyler(s), you've been posting a lot of this guy's stuff lately. You know something we dont?

Crash Overide's picture

The economy as we know it is about to collapse maybe?

knukles's picture

They're lying.  It's all good.  Don't listen to the Conspiracy Theorists and "Nattering Nabobs of Negativism"*. 


*Many thanks to the greatest philosopher of the 20th Century, Spiro Agnew

RockyRacoon's picture

He was a crook as bad as the rest of them, but he knew the score:

The American people should be made aware of the trend toward monopolization of the great public information vehicles and the concentration of more and more power over public opinion in fewer and fewer hands.
Spiro T. Agnew

SafelyGraze's picture

the imf issues special drawing rights to the members of the imf club

it just *issues* them

at will

and if you receive them, you agree to pay them back with interest

where will you get the interest?

by receiving more special drawing rights issued by the imf

and then paying back these additional SDRs, with interest


lakecity55's picture

You pay them back with national assets.

All Risk No Reward's picture


The occulted characteristic of Western "modern money" is that it is a systematic societal asset stripping mechanism.

The wealth of the wealthiest "big club" (props to George Carlin) people on the planet is, BY DEFINITION, the inextinguishable debt of everyone else.

Bailouts only bankrupt society more quickly - they issue $1 trillion in debt to society and the "big club" front corporations get the money required to pay back that debt.

The Fords got this issue right...

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.”
~Henry Ford

"The youth who can solve the money question [debt based mnonetary fraud resulting in inextingushable debt that should result in a revolution before going to sleep!] will do more for the world than all the professional soldiers of history."
~Henry Ford, Sr.

The people I speak with long for the days of yore when the term "conspiracy theorist" could actually stick to a guy like me.  I have one coworker who simply refused to look at the following chart because "it won't make me happy."

Debt Money Tyranny

The evil runs very, very, very deep and the fact our monetary system is a total fraud and nobody in the establishment will expose the 3rd grade math behind it is chilling.

Some could argue supernatural.

bank guy in Brussels's picture

Explosive but largely unknown fact - the IMF has actual authority to PRINT MONEY charged to the accounts of the IMF member nations !

Ambrose Evans-Pritchard covered this a while back ... When the shite hits the fan, the IMF itself can print ... and they certainly will


LetThemEatRand's picture

And they are likely to print (using Special Drawing Rights -- SDRs) backed by gold and/or silver.  It would be easier for all of us if the IMF's name were changed to NWO.  For now, we can just say that the IMF will help usher in a New World Order when the shit hits the fan.  That pretty clearly is the long-term plan.  The question is how long.

escargot's picture

I worked as a cook at Hooters for three years when I was younger.  Greatist....job......EVER!

Skateboarder's picture

It's okay, we can all eat iPads when we get hungry. And Lady GaGa and Justin Bieber will sing us songs to improve morale.

Petrus Romanus's picture

Better to just eat Lady GaGa and Justin Bieber while listening to their songs on the iPad.

TeamDepends's picture

Thanks a lot!!  All that ale that had been carefully ingested is now all over the floor!

Skateboarder's picture

Be careful, you might get madClown disease.

ebworthen's picture

The FED will be pumping taxpayer money into the IMF as long as the TBTF banks in the U.S. and Brussels want them to.

Can't have the Elite's power structrue and wealth being threatened, now can we?

Richard Whiskey's picture

Better to be rich and guilty than poor and innocent.

CH1's picture

Better still to be comfortable and innocent.

Colonel Klink's picture

And even better still when the poor and innocent start eating the rich and guilty.

sunny's picture

The market will collapse only after central banks stop printing.  There will be no market correction of any significance until central banks stop printing.  The value of all fiat currencies will evaporate as a result of central bank printing, but at least the markets will continue to soar like a homesick angel as long as central banks print.  Central banksters will print until someone stops them.  Economies will slide into an abyss and people will suffer as a result, but politicians will always point to a rising stock market as proof recovery and will not stop central banksters from printing.  Politicians simply will not stop central banksters from destroying world economies.

It all seems so obvious, why do economics writers keep wondering how long before it all collapses?


ebworthen's picture

"...like a homesick angel..."  +1

And for the rest.

Power structure & chain of command:

Banker elite's > Central Banks > Corporations > Opportunist's > Politicians > Judiciary > Police/Military > Mice > Cockroaches > aluminum cans > candle wax > used mop heads > Citizens

Winston Churchill's picture

You missed tape worms and head lice.right after mice.

Al Huxley's picture

Seems pretty much correct, except that I think the correct modern term is 'consumers' (or behind closed doors, I think they use 'useless eaters') rather than citizens. 

AgentScruffy's picture

A classic --I just posted it a few minutes ago. It's also helpful, in that people who don't have a knowledge of economics can "get" the big picture if they watch this. And those of us who already understand can enjoy the relief of humor (albeit dark humor) with a glass of bourbon.

put_peter's picture

I promise you this if you promise me that. We all know how this ends.

blindman's picture

fiat money is created out of thin air,
what, did we run out of thin air?
I think not !
the important question is "who owns the thin air?"
head scratching ensues !

blindman's picture

[KR467] Keiser Report: Art of Debt Juggling

Posted on July 6, 2013 by Stacy Herbert

We discuss tipping points on the way to the Bondpocalypse, a time when flipping houses to greater fools will no longer be a viable retirement plan and incarcerating your fellow slightly annoying citizens for eternity will be far too much decadence to afford. In the second half, Max talks to Karl Denninger of Market-Ticker.org about bonds, QE tapering and Wimpy from Popeye paying for a hamburger next Tuesday. Karl says that as any investor under 50 will only know a world of ever declining interest rates, they will have to adjust their thinking for this new period of ever rising or flat rates.


OneTinSoldier66's picture

"41 IMF Bailouts And Counting - How Long Before The Entire System Collapses?"



Define "Collapse" first.


Even then I don't know that I would have an answer that fits for everybody on earth. I would say that perhaps it depends on one's perspective.


Once I saw that there was such a thing brought into existence by Government decree called TBTF(which does not exist becuase there is no such thing as TBTF outside of a Government), and that the Fed was going to be printing money up out of thin air in order to bail out TBTF, that was a collapse to me.


Whereas Ben Bernanke et. al. won't look at it as a collapse until such time that the Fed's printing press is taken away from them.



Ignatius's picture

Define "collapse" first:


Well Mack the finger said to Louie the King
I got forty red white and blue shoe strings
And a thousand telephones that don't ring
Do you know where I can get ride of these things?
And Louie the King said let me think for a minute son
And he said yes I think it can be easily done
Just take everything down to Highway 61


Now the rowin' gambler he was very bored
He was tryin' to create a next world war
He found a promoter who nearly fell off the floor
He said I never engaged in this kind of thing before
But yes I think it can be very easily done
We'll just put some bleachers out in the sun
And have it on Highway 61.

-- Bob Dylan

EclecticParrot's picture

(for fans of Al Stewart and sovereign debt)


On a morning from a Chandor movie

In a market some will start to fade

You go strolling through the crowd like Peter Thiel

Contemplating a trade

She comes out of the sun in a Greek dress

Cut like a waterfall in Spain

Don't bother asking about deflation

She'll just tell you that she came

In the Year of the Crash


She doesn’t hear your last suggestion

As she locks up your trade in hers

And you follow 'till your sense of proper hedging

Completely disappears

By the red-numbered wall as the credits fall

There's a hidden tranche she leads you to

These days, she says, I feel my risk

Just like a shiver running through

The Year of the Crash


She works her plan so coolly

And her eyes bulge like the spreads in Lisbon

She wears Fibonacci and Bernoulli

Still you go long, to find what's waiting inside . . .

The Year of the Crash

. . . 

Well, the bottom comes and you're still with her

And the big alpha hedge funds are gone

And you've thrown away the choice and lost your nest egg

So you choose to stay long

But the financial strains of the day remain

And the challenge of the ESM

You know someday you're bound to fade her

But for now you're going to stay

In the Year of the Crash

Cathartes Aura's picture

gotta love a real music fan.

here's one that could see the future, whatever that is.


EclecticParrot's picture

Makes me wonder if I may have subconsciously modelled the female protagonist in my Al Stewart parody off of a certain ZH-er :)

Dre4dwolf's picture

In raw math, it can go on forever as long as there is a bank willing to lend into existance money to cover what is "owed" to it already.


The banking system is one giant circle jerk.

Bank prints money

Bank lends money

Bank waits for borrower to give money back

Borrower doesn't ever have enough money to pay back the old loan

So bank has to lend more money into existance and refinance the old debt

This cycle goes on forever, because there is never enough money left in circulation to pay off the debt, since you have debt + interest.

The only way one country can pay off the central bank in europe is if another country goes bankrupt.


Its like a game of musical chairs , and the players are the nations of europe.


The same thing is happening in the USA but over-here we have a central bank that bends over and takes it for wallstreet so the game is a little more friendly.

mvsjcl's picture

Modern banking is nothing more than an asset stripping scheme. It is fraudulent to its core, and criminal in its exercise.

alfred b.'s picture


     It's ok, barnanck has got their back....move along everyone, nothing to see here!!

    We'll only observe the magnitude of this horrific crime once the 'wheels literally fall off the wagon'.      Got gold anyone!!


Bear's picture

I think the FED and PD's should have used the money that they used to sell gold and silver to buy bonds. I think a giant margin call is right around the corner where they will have to buy back the gold to cover their bond losses. Long Bond has lost 6% in ten days, 12% with margin or 60% with leaverage ... bailout of gold shorts and equity longs will proceed very shortly

OneTinSoldier66's picture

So if the "wealthy" nations fail, who is going to be there to help the "poor" nations?


Define: "wealthy"


If paper money debt is wealth, then I guess the U.S. is pretty damn wealthy, as the largest debtor nation on earth.

Crash Overide's picture

Wealthy nations = Ctrl C, Ctrl P on the FED Terminal = MOAR 0's = MOAR DigiFiat = Problem solved bitchez. 

richard007's picture

The entire system will not collapse until the prophesied

Iran War - Revelation 6:3-4. Then it will collapse!


lakecity55's picture


Hard to deciper that particular book.

AgentScruffy's picture

Yes, it's difficult. The 25-cent bins are full of books written in the past few decades, by people who were absolutely certain that they had figured that book out.

Meanwhile some (in Reformed theology) believe the book was written in something of a coded form on purpose: bc being a Xtan in the time of Nero was a life-and-death deal. They believe many of the events describe the harrowing persecution of Nero, interwoven with future theological predictions related to the consummation of all creation. (So, the then-present + the past + the near and far future, all woven together as a fantastically complicated fugue.)

justamousesquared's picture

Most of them are mickey mouse countries with mickey economies. May be they will pay back with mickey mouse money.

In the end, this is just an illusion, does it matter anymore.

It's the new normal, head down, shoudler to the wheel and heave slaves, heave!!!

Goldilocks's picture

Paul Simon - Kodachrome
http://www.youtube.com/watch?v=wZpaNJqF4po (3:26)

Paul Simon - Slip Slidin' Away + lyrics
http://www.youtube.com/watch?v=5_H-LY4Jb2M (4:46)

AgentScruffy's picture

Some dark humor: World collapse explained in 3 minutes: http://www.youtube.com/watch?v=NOzR3UAyXao

q99x2's picture
How Long Before The Entire System Collapses?

I suspect around 2008. Since FRAUD is FRAUD and can only give the appearence that the system is not already dead beyond revival, currently we have, covering over the dead system, a game of grifters that is underway. The global criminals are transferring the last of the spoils of conquered nations into their private stashes. Then they are going to attempt to fucking kill us all.

blindman's picture

if they do it over a long enough period of time no one will notice.
"..doing the work of god". l.b.. he told us.
"...thousand years as one day—No delay which occurs is long to God: as to a man of countless riches, a thousand guineas are as a single penny. God's oonologe (eternal-ages measurer) differs wholly from man's horologe (hour-glass). His gnomon (dial-pointer) shows all the hours at once in the greatest activity and in perfect repose. To Him the hours pass away, neither more slowly, nor more quickly, than befits His economy. There is nothing to make Him need either to hasten or delay the end. The words, "with the Lord" (Ps 90:4, "In Thy sight"), silence all man's objections on the ground of his incapability of understanding this [Bengel]."

blindman's picture

"where have all the hobos gone to?" ...j.p
John Prine Hobo Song

The Hobo Song
by John Prine

" There was a [D]time, when [G]lonely men would [D]wander;
Through this [A7]land, rolling endlessly [D]along.
So many [D]times, I've [G]heard of their sad [D]stories;
[D]Written in the [A]words of dead men's [D]songs.

Down through the years, many men have yearned for freedom.
Some found it only on the open road.
So many tears of blood have filled around them;
'Cause you can't alway do what you are told.

Please tell me where, have all the hobos gone to.
I see no light a'burning down by the rusty railroad tracks.
Could it be, that time has gone and left them,
Tied up in life's eternal travelling sack.

Last Sunday night, I wrote a letter to my loved ones.
I signed my name and knew I'd stayed away too long.
There was a time when my heart was free to wander.
And I remember as I sing this hobo song " j.p.
just in case you missed it