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The Ebola Epidemic Silver-Lining: IMF Bailouts For Everyone

Tyler Durden's picture




 

Never waste a good crisis. While we already knew a major reason for The West chasing into Africa was to leverage its relatively low credit levels as the last bastion of Keynesian-stimulus-hope in the world (estimated at between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral). And so it is little surprise that, as The WSJ reports, The International Monetary Fund on Thursday warned the West African Ebola epidemic requires a "large scale" global intervention to control a crisis that is ravaging economies in the region. All three major Ebola-suffering countries were already in bailout programs ($200mm loan in 2012 for Guinea, $100mm loan for Sierra Leone, and $80mm credit facility for Liberia) but with the "world community taking forever to respond," The IMF is happy to step in and secure some assets / lend over $100mm more to each nation to fill financing gaps.

 

As The Wall Street Journal reports,

The International Monetary Fund on Thursday warned the West African Ebola epidemic requires a "large scale" global intervention to control a crisis that is ravaging economies in the region.

 

The IMF, the world's emergency lender, said it is in talks to boost bailouts for Sierra Leone, Guinea and Liberia as the disaster slams economic output and overwhelms government financing.

 

"Beyond the human toll that this outbreak is exacting, the Ebola outbreak looks set to cause significant harm to the economies of Guinea, Liberia and Sierra Leone," IMF spokesman William Murray said in a news conference Thursday.

Of course, we noted previously the economic collapse this epidemic was having

This year was supposed to be a bright one for the three deeply poor governments bearing the brunt of West Africa's Ebola problem. After 50 unbroken years of dictatorial misrule, Guinea—a democracy since 2010—had planned to auction off a multibillion iron-ore concession. Liberia, scene of a horrific 14-year-long civil war, had begun auctioning off offshore oil blocks. Sierra Leone was set to be Africa's fastest-growing economy for the second time in three years, the IMF had projected.

 

But now the fund estimates the epidemic will cut growth in Sierra Leone to 8% this year from a previous rate of 11.3%. Liberia's growth will more than halve to 2.5%. Guinea will see its prospects fall to 2.4% from a previously expected rate of 3.5%, the fund said.

So The IMF will lend them even more money, putting them in even more debt...

All three countries were already in bailout programs. The IMF approved a $200 million loan in 2012 for Guinea, a $100 million loan for Sierra Leone late last year and signed an $80 million credit facility for Liberia two years ago.

 

The World Bank has also boosted its financing to the region, mobilizing a $230 million package for the three worst-hit countries, including $105 million in emergency grants.

 

Each of the three countries faces a financing gap of between $100 million and $130 million due to the havoc hitting agriculture, trade and other commerce, the fund said.

*  *  *

 

 

Finally, as we noted before, this move by The IMF appears to be exactly what they hoped for...

While those in the power and money echelons of the "developed" world scramble day after day to hold the pieces of the collapsing tower of cards in place (and manipulating public perception that all is well), knowing full well what the final outcome eventually will be, those who still have the capacity to look, and invest, in the future, are looking neither toward the US, nor Asia, and certainly not Europe, for one simple reason: there is no more incremental debt capacity at any level: sovereign, household, financial or corporate. Because without the ability to create debt out of thin air, be it on a secured or unsecured basis, the ability to "create" growth, at least in the current Keynesian paradigm, goes away with it.

 

Yet there is one place where there is untapped credit creation potential, if not on an unsecured (i.e., future cash flow discounting), then certainly on a secured (hard asset collateral) basis. The place is Africa, and according to some estimates the continent, Africa can create between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral.

 

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Mon, 09/15/2014 - 21:06 | 5220819 Dr. Engali
Dr. Engali's picture

Africans driven into slavery again, this time by debt.

Mon, 09/15/2014 - 21:07 | 5220824 Thanatos
Thanatos's picture

Ahhh... The IMF Loans...

Mon, 09/15/2014 - 21:24 | 5220881 TeamDepends
TeamDepends's picture

They say Silver-Lining, but they don't mean it.

Mon, 09/15/2014 - 21:24 | 5220885 Herd Redirectio...
Herd Redirection Committee's picture

99 conditions, but the debt ain't one.

Mon, 09/15/2014 - 21:46 | 5220934 MonsterBox
MonsterBox's picture

Imagine... Jackson Hole as an Ebola hot spot..... unknown until the banksters get home to their wives & skank mistresses. 

Dang, what a rage.... I gotta fap this one off.

Mon, 09/15/2014 - 21:47 | 5220963 Enslavethechild...
EnslavethechildrenforBen's picture

Imagine Ebola rampant in Israel home of the Jew...

Mon, 09/15/2014 - 21:52 | 5220975 idea_hamster
idea_hamster's picture

That map doesn't include Alaska -- which is a huge part of US territory.

Mon, 09/15/2014 - 22:20 | 5221057 OldPhart
OldPhart's picture

That was 'China - Part 2'

Tue, 09/16/2014 - 00:33 | 5221437 CheapBastard
CheapBastard's picture

Swiss Bankers are loving it; the African Dick-Taters lining up to deposit their share of the IMF Loot or purchase another chateaus on Lake Geneva.

 

Bullish!

Tue, 09/16/2014 - 02:12 | 5221593 Manthong
Manthong's picture

The IMF will counsel: “There is no better time to embrace severe austerity and hand over your remaining assets than after you have been ravaged by Ebola”.

Mon, 09/15/2014 - 21:54 | 5220980 Urban Redneck
Urban Redneck's picture

I'm surprised there wasn't any mention of Ghana's $1B eurobond placement at 8.125 a few days ago - while it is in the midst of negotiating an IMF bailout. (ostensibly because it cannot borrow in the marketplace)... Taking WTF??? to a whole new level.

Mon, 09/15/2014 - 21:08 | 5220825 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Nothing like abusive usury. And the Rothschilds go "Amen".

Mon, 09/15/2014 - 21:14 | 5220852 TeethVillage88s
TeethVillage88s's picture

Fascists. Wow. IMF/WB/OECD/BIS/WTO What a magnificent Cartel.

Mon, 09/15/2014 - 21:45 | 5220955 nmewn
nmewn's picture

You forgot WHO ;-)

Mon, 09/15/2014 - 21:23 | 5220879 TruthInSunshine
TruthInSunshine's picture

The IMF is an evil organization, and I guarantee that any African nation being provided any financial "assistance" by it will have to literally pledge critical infrastructure and mineral/oil deposits as collateral for that assistance.

The IMF is the same entity that, along with Bechtel of the U.S., tried to get the government to pass legislation criminalizing collection of rain water by sovereign citizens of Bolivia, as a condition to loan assistance for infrastructure improvements (they even encouraged the Bolivian gov't to use live ammunition against protesters, killing and seriously wounding many young people).

http://www.pbs.org/frontlineworld/stories/bolivia/timeline.html

The people who sit as directors of the IMF, with smiles and silver tongues, are evil people with banksters' & globalists' agenda as their true mission.

Mon, 09/15/2014 - 21:47 | 5220966 Enslavethechild...
EnslavethechildrenforBen's picture

Jews

Mon, 09/15/2014 - 21:35 | 5220920 Horseless Headsman
Horseless Headsman's picture

It's not collateral, it's sale under duress. I can see it now - We (banking cartel) work all morning to create some FRNs for them at no cost, and then in a little while, we get our choice of the prizes.

Mon, 09/15/2014 - 21:45 | 5220958 Peelingtheonion
Peelingtheonion's picture

PTI,

 

Damn..... IMF..WB...equals....payday loans....and car title....scams  

Mon, 09/15/2014 - 21:09 | 5220835 nmewn
nmewn's picture

How true.

Mon, 09/15/2014 - 21:26 | 5220889 Berspankme
Berspankme's picture

Lagarde with ebola. Now thats something i would enjoy

Mon, 09/15/2014 - 21:39 | 5220935 MsCreant
MsCreant's picture

Would she bleed red? Or orange?

Mon, 09/15/2014 - 21:44 | 5220948 nmewn
nmewn's picture

Tricolor French, just like the last head of the IMF.

Course it could be UN blue, lets find out! ;-)

Mon, 09/15/2014 - 21:47 | 5220967 Dr. Engali
Dr. Engali's picture

I'm thinking she bleeds white, like a surrender flag. She is French, don'tchyaknow?

Tue, 09/16/2014 - 03:42 | 5221683 truthseeker44
truthseeker44's picture

my roomate's sister-in-law makes $72 hourly on the laptop . She has been out of a job for 6 months but last month her payment was $18482 just working on the laptop for a few hours. use this link... www.payvalt.com

Mon, 09/15/2014 - 21:08 | 5220832 intric8
intric8's picture

So the corrupt at the top get a slush fund in these countries as well. Do these IMF morons realize that less than 1% of funds thrown at 3rd world countries actually make it into the gp? 

Mon, 09/15/2014 - 21:19 | 5220866 MsCreant
MsCreant's picture

"Do these IMF morons realize that less than 1% of funds thrown at 3rd world countries actually make it into the gp?"

Do YOU think they give even one flying fuck? 

Mon, 09/15/2014 - 21:19 | 5220868 Dr. Engali
Dr. Engali's picture

The bankers don't care where the money is used. Their only concern is the return they get on their "investment".

Mon, 09/15/2014 - 21:26 | 5220888 MsCreant
MsCreant's picture

Their only concern is the return they get on their "investment".

So much irony, so little time.

Investment = The Treasury issuing bonds that the Fed buys, then releases pixels on a screen into an "account" to the IMF.  US Taxpayer on hook for it.

Return = They all default, IMF gets drilling mining etc. rights. Fed gets theirs from US Govt.

Sweet! 

Mon, 09/15/2014 - 21:42 | 5220939 Dr. Engali
Dr. Engali's picture

And if the parties refuse to play along an alphabet agency creates havoc in your country. If they can't get the job done the MIC can always bomb some freedom into you.

Mon, 09/15/2014 - 21:49 | 5220971 Enslavethechild...
EnslavethechildrenforBen's picture

If you don't play along I will hold my confetti and bomb you into the Stone Age

Mon, 09/15/2014 - 22:04 | 5221009 Swave
Swave's picture

First the economic hit men. If they fail.

Second send in the jackals. If they fail.

Bombs and boots.

Mon, 09/15/2014 - 21:10 | 5220833 Dr. Engali
Dr. Engali's picture

Any place you find turmoil you can find a banker who will profit from it.

Mon, 09/15/2014 - 21:18 | 5220864 TeethVillage88s
TeethVillage88s's picture

USA has everyone beat though, but we can't swear who is Running the USA. FED, Jesuits, Zionist, Masons, Illuminati... still look at the Long Term Sales of US Treasuries:

Repost:

Check page 35 of both TICData reports (2002 & 2013) for Belgium, Cayman Islands, and Luxemburg. LT US Treasuries go from $10 Billion to $366 Billion. (partly due to safe haven effect, but also due to Financial System on Steroids) Or just take a look below to refresh your memory.

Interesting of the $26 Trillion in Foreign Owned US Assets put out by BEA.GOV on IIP Data, looks like about half is accounted for in the 2013 Data Report as Equities, LT Corporate Debt, LT Agency Debt, LT Treasuries. Which leaves me to conclude foreign owned US Real Estate must be about $12-14 Trillion (page 30). But I am not an Economist or Financial guy. Maybe Europeans are also buying US Real Estate.

http://www.treasury.gov/ticdata/Publish/shl2002r.pdf
http://www.treasury.gov/ticdata/Publish/shla2013r.pdf
(http://www.treasury.gov/ticdata/Publish/mfh.txt)
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm

Last Data is from April 2014.

Belgium 2002 = $10.8 B, then 2013 = $163 B, Today $366 B
Cayman Islands 2002 = $10.7 B, then 2013 = $66 B, Today ??
Canada 2002 = $8.4 B, then 2013 = $46.6 B, Today $60.5 B
China 2002 = $95 B, then 2013 = $1,272 B, Today $1263 B
Hong Kong 2002 = $37 B, then 2013 = $89 B, Today $155 B
Ireland 2002 = $6 B, then 2013 = $91 B, Today $112 B
Japan 2002 = $260 B, then 2013 = $1,023 B, Today $1210 B
Luxemburg 2002 = $20.2 B, then 2013 = $107 B, Today $141 B
Philippines 2002 = $3 B, then 2013 = $36 B, Today $34 B
Poland 2002 = $7 B, then 2013 = $31 B, Today $30 B
Russia 2002 = $3 B, then 2013 = $138 B, Today $116 B
Switzerland 2002 = $28 B, then 2013 = $157 B, Today $178 B
Taiwan 2002 = $0 B, then 2013 = $183 B, Today $175 B
United Kingdom = $45.7 B, then 2013 = $130.6 B, Today $186 B

Mon, 09/15/2014 - 21:32 | 5220911 TeethVillage88s
TeethVillage88s's picture

Let's Tie UK & Ireland LT US Treasuries purchased by these countries... in the US Global Wars...and to after the 2008 Financial Scandal & Crisis.

So let's look at Debt:

we are becoming the UK, with Low Wages, Low Benefits, and High Household Debt to GDP of 200% per household...

Look at what the Rothschild's did to United Kingdom:

http://www.usdebtclock.org/world-debt-clock.html

UK External Debt to GDP is = 462%
Ireland External Debt to GDP is = 1061%

Greece, France, Portugal & Spain all look better than the United Kingdom who have Enjoyed the Rothschild's indomitable "Banking Expertise" for over 200 Years.

We should say rather the Rothschild's Interminable "Banking Expertise".

IN 1980 the USA was looking Sweet, till Ronald Reagan got into Office:

Debt to GDP = 35% in 1980
Debt to GDP = 100% Today

http://www.usdebtclock.org/1980.html

Wages & Compensation = Decrease
Household & Private Debt = Exponential Increase
Federal Debt & Budget = Exponential Increase
Corporate Taxes & Tax Base = decreasing

TBTF Bailouts, Bail-Ins, & QE = Exponential Increase
Sale of US Assets & Property to Foreigners = Exponential Increase.

Household Debt to GDP for United Kingdom©
2011:Q4: 204.34306 Ratio HDTGPDGBQ163N, Updated: 2013-10-01
http://research.stlouisfed.org/fred2/series/HDTGPDGBQ163N

---

How can UK & Ireland afford to hold US Treasuries while paying Interest on National Debt?

How can the Vatican or Israel for that matter hold huge Financial Assets while holding poor people in misery, despair, and agony...?

WTF isn't government supposed to think, help, and conserve money for future projects... versus use public funds for war & empire & inside deals with other nations while suppressing & blackmailing other nations.

Mon, 09/15/2014 - 21:37 | 5220927 TeethVillage88s
TeethVillage88s's picture

And if you are looking at China & Japan LT Treasury holdings... I guess we know why the US is keeping Trade Free.

A Deal looks like it was made. Buy US LT Treasuries in exchange for "Free Trade".

Mon, 09/15/2014 - 23:31 | 5221267 ThroxxOfVron
ThroxxOfVron's picture

"How can UK & Ireland afford to hold US Treasuries while paying Interest on National Debt?

How can the Vatican or Israel for that matter hold huge Financial Assets while holding poor people in misery, despair, and agony...?

WTF isn't government supposed to think, help, and conserve money for future projects... versus use public funds for war & empire & inside deals with other nations while suppressing & blackmailing other nations."

 

Govenments are privatizing their populations via bond issuance.  The IMF is just an informal off-shored entity performing the same conversion.

Mon, 09/15/2014 - 21:10 | 5220840 MsCreant
MsCreant's picture

EEEEEEEBOOOOOOOLAH!A McMolotov TM

Mon, 09/15/2014 - 21:16 | 5220844 mendigo
mendigo's picture

When the black swan is sighted Dimon will race to embrace it an engage in carnal relations with it probably sacrafice a "virgin" or two.

Mon, 09/15/2014 - 21:13 | 5220851 pocomotion
pocomotion's picture

This is so sick.  If this is just 30% honest reporting, the IMF, BIS, FED have GOT TO GO!  And, find out who, how, what, when, where (WE KNOW THE WHY ) EBOLA is being deployed.

 

Mon, 09/15/2014 - 21:16 | 5220856 MsCreant
MsCreant's picture

Despite all our rage we are still just rats in a cage...

Tue, 09/16/2014 - 01:57 | 5221573 Ward no. 6
Ward no. 6's picture

smashing pumpkins///

Mon, 09/15/2014 - 21:16 | 5220859 MsCreant
MsCreant's picture

They have to exploit EVERYTHING. 

Mon, 09/15/2014 - 21:17 | 5220863 DIgnified
Mon, 09/15/2014 - 21:20 | 5220871 MsCreant
MsCreant's picture

WRONG. They have accomplished world dominion and we let them.

I don't know why I even bother being angry?

Mon, 09/15/2014 - 21:38 | 5220930 Dr. Engali
Dr. Engali's picture

Because once you've moved past anger, you've transitioned into acceptance. After that you might as well swallow the blue pill.

Mon, 09/15/2014 - 21:45 | 5220952 knukles
knukles's picture

Cynicism works well without the burning anger and resentment issues so oft employed as foils to confuse and distract.
Cynical sarcasm. 

Mon, 09/15/2014 - 21:47 | 5220960 willwork4food
willwork4food's picture

You are one of my favorite writers around these hills Doc. Well said.

Mon, 09/15/2014 - 21:56 | 5220985 Dr. Engali
Dr. Engali's picture

Thank you for the kind (and humbling) compliment. I learned a lot from those who came before me. It's too bad so many great commentators left.

Tue, 09/16/2014 - 06:46 | 5221866 Wahooo
Wahooo's picture

You don't move past anger, you do something with it. You give it to God or you give it to the deserved. But if you don't give it, you turn on yourself.

Mon, 09/15/2014 - 21:44 | 5220951 willwork4food
willwork4food's picture

There is a difference between just being angry and understanding the situation and hating what they are doing.

Mon, 09/15/2014 - 21:26 | 5220891 Paracelsus
Paracelsus's picture

Look,this stuff is not secured collateral anymore than the MBS shit was fungible.Was it only a few weeks ago that 

Portugese were bailing out Espirito Santo holding companies because of an unpaid (defaulted) loan to Angola?

All the rosy estimates about Africa do not take into account a) Swiss accounts (corruption) and b)Defense

expenditures.

Mon, 09/15/2014 - 21:36 | 5220924 MsCreant
MsCreant's picture

Maybe they are just printing to save the world and they really don't expect it to get paid back.

Right? Right?

Mon, 09/15/2014 - 22:15 | 5221036 Jena
Jena's picture

Maybe they're printing just to keep us from thinking about the meteor they haven't told us about yet. And they'll catch it first.

Oh yeah.

Tue, 09/16/2014 - 00:11 | 5221391 Aussiekiwi
Aussiekiwi's picture

If we print enough, maybe we can make it all into a giant ball and fire it at the meteor.

Mon, 09/15/2014 - 21:38 | 5220936 g speed
g speed's picture

Maybe a re read of Heart of Darkness is in order---

Mon, 09/15/2014 - 21:44 | 5220949 Horseless Headsman
Horseless Headsman's picture

Without an army to enforce their claims, the subject countries could tell them to FO and reclaim their assets. So the obvious thing to attempt would be to deprive the cartel of access to a willing army.

Mon, 09/15/2014 - 22:02 | 5221001 Otto Zitte
Otto Zitte's picture

What a scam.

Mon, 09/15/2014 - 22:37 | 5221115 Cheduba
Cheduba's picture

Now I understand all the relentless media hype - we need "global intervention" to solve this "ebola crisis".  And to create a few trillion more in interest income for the globalists.

Mon, 09/15/2014 - 23:04 | 5221196 Rootin' for Putin
Rootin' for Putin's picture

All these lovely resources but all these darn africans in the way...Anyone got a spare vial of ebola?
Problem solved.

Tue, 09/16/2014 - 00:11 | 5221385 Aussiekiwi
Aussiekiwi's picture

Fortunately the IMF are happy to come in and take ownership of their assets for them.

Tue, 09/16/2014 - 00:27 | 5221427 are we there yet
are we there yet's picture

Liberia and close neighbors have no assets for the IMF, only liabilities. Maybe Nigeria has oil for the IMF if they got desperate.

Tue, 09/16/2014 - 02:03 | 5221585 Aussiekiwi
Aussiekiwi's picture

They must have something, what about slavery?

Tue, 09/16/2014 - 00:08 | 5221380 IridiumRebel
IridiumRebel's picture

So are we at 3K "official" deaths yet? To seal this deal, IMF better send some Kevin Henry's to ink it in a saloon in West Point. Drink up!

Tue, 09/16/2014 - 00:10 | 5221382 HardlyZero
HardlyZero's picture

The 1% must be busy now making lots of plans how to spend their "IMF Bucks".

Luxury hospitals.

Super security.

Lots of brass and lead.

Special police.

Dacha compounds and perimeter land grabs.

Busy !

(dismal)

Tue, 09/16/2014 - 00:17 | 5221404 are we there yet
are we there yet's picture

As the ebola epidemic gets closer to Kenya, Obama is asking Congress for $1 billion to fight Ebola. Can we just send Obama instead?

Tue, 09/16/2014 - 00:51 | 5221463 thamnosma
thamnosma's picture

No, but he's sending many others.  Time to go AWOL.  I would.

Breaking news:

"Obama administration to assign 3,000 US military personnel to combat Ebola in West Africa - @AP"
Tue, 09/16/2014 - 03:45 | 5221692 grekko
grekko's picture

Where's your heart.  These people have suffered enough already.

Tue, 09/16/2014 - 01:07 | 5221504 yogibear
yogibear's picture

Ebola should do a nice number on the economy when it hits the US.

Tue, 09/16/2014 - 01:59 | 5221576 q99x2
q99x2's picture

Get your natural rescources penny on a dollah. Ebola the gift brought to you by those doing God's work--Goldman Sachs and Loyd Blankfein..

Tue, 09/16/2014 - 03:43 | 5221680 grekko
grekko's picture

Here come the loansharks.  Net step, economic hit men.  I hope Goldman doesn't miss this opportunity.

Tue, 09/16/2014 - 03:53 | 5221705 atthelake
atthelake's picture

America is sending 3000 troops, to Africa, to help with the Ebola epidemic. Another 3000 ways to bring Ebola to America.

Tue, 09/16/2014 - 05:18 | 5221805 barre-de-rire
barre-de-rire's picture

map maker never gone in africa, ever.

 

Tue, 09/16/2014 - 05:24 | 5221807 Ebanga Planti
Ebanga Planti's picture

The WEST will stop at nothing to achieve their bloodthirsty desires

http://pneumatikeconomist.wordpress.com/2014/09/05/the-white-blood-bank/

 

i hope Africans can become wise and escape its fangs

http://pneumatikeconomist.wordpress.com/2014/08/19/the-33-billion-fruit-...

Tue, 09/16/2014 - 06:40 | 5221856 Lumberjack
Lumberjack's picture
Obama to ramp up U.S. response to Ebola with military mission

http://www.reuters.com/article/2014/09/16/us-health-ebola-obama-idUSKBN0...

Tue, 09/16/2014 - 06:43 | 5221861 Lumberjack
Lumberjack's picture
Boeing-Lockheed venture said teaming with Bezos on rocket engine

http://www.reuters.com/article/2014/09/16/us-boeing-lockheed-martin-bezo...

 

Officials at Boeing and Lockheed declined comment. No comment was immediately available from Blue Origin or United Launch Alliance (ULA), the Boeing-Lockheed venture that uses Russian-built engines to power some of its rockets.

 

ULA had sent out a request for information asking the U.S. aerospace industry earlier this year for ideas on how to replace the Russian-built RD-180 that powers ULA's heavy-lift Atlas 5 rockets, which are used to launch many U.S. military and spy satellites.

Tue, 09/16/2014 - 06:43 | 5221862 Wahooo
Wahooo's picture

I hope they are there to call in air strikes. ISIS is nothing compared to ebola.

Tue, 09/16/2014 - 16:04 | 5223903 MeelionDollerBogus
MeelionDollerBogus's picture

COOL! Now we can call them the Ebola Monetary Fund.

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