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Monetary Lunacy At Work: IMF Puts 0.05% "Floor" Under SDRs
Via Acting Man's Pater Tenebrarum via Contra Corner blog,
No negative rates for the putative Bancor... Keynes must surely be rotating in his grave. It turns out the IMF is not going to lend SDRs for less than nothing, thus breaking ranks with some well-known central banks out there (no need to name names), and even the central bank-manipulated “market” in which investors accept negative rates on certain government bonds as if that made any sense.
Instead, the IMF has decided to set a floor for its SDR interest rate to maintain its role as a profit center…it will be at what is nowadays a downright usurious height of 0.05%. So at least at the IMF, there will be no pretense that time preferences can actually turn negative.
There will be no funny money for nothing from me, busters!
However, the IMF is thereby effectively raising its interest rate, which until recently was at a mere 0.03%:
“The International Monetary Fund is setting a 0.05 percent floor on the interest rate used to determine borrowing costs for some of its loans.
The executive board modified rules today to make the change, according to a statement today in Washington.
The IMF’s Special Drawing Right, based on a basket of the dollar, yen, euro and pound, is the fund’s unit of account that serves as a supplemental reserve asset and was designed to improve global liquidity.
The SDR interest rate was quoted on the IMF website at 0.03 percent today compared with 0.13 percent in April and more than 3 percent in August 2008, before central banks slashed borrowing costs to zero to boost growth in the aftermath of the financial crisis.
The rate will be 0.05 percent on Oct. 27, the IMF said.
The board also approved changing the rounding convention for calculating the SDR rate to three decimal points from two, the statement said.
The SDR interest rate is used to calculate interest charged to member nations for non-concessional loans and SDR allocations, and the rate paid to members for SDR holdings. It is calculated from a weighted average of the short-term money market rates of the SDR basket currencies.
A floor will prevent the SDR rate from going negative, in the event that money market interest rates on some of the currencies in the underlying basket themselves go negative, an IMF official told reporters on condition of anonymity. The fund has no legal basis for charging a negative rate on SDRs.
(emphasis added)
So this is a precautionary measure in case the phenomenon of negative market interest rates on short term government debt instruments starts spreading further. Needless to say, we take the fact that the IMF feels it has to prepare for this eventuality as yet another sign that the whole world has essentially gone insane.
Clear signs of the spread of central bank-induced insanity – German government debt yields are negative out to two years – via BigCharts. click to enlarge.
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D-D-Deflation
In everything you don't need for survival, yes.
Everything else, not so much.
Where's my million dollar loan at 0.05% interest?
Because fuck you, that's why. Fuck IMF and sdr...fiat fails, always.
Not very famaliar with sarcasm or a very critical thinker are you asshat?
We farm and have plenty of physical and food, go fuck yourself.
Some will eat, most will not.
Same as it ever was...
Wise thinking if You ask me.....Never lend money out for free.
sarc off
OT- Hedge Fund manager sent $1.5MM in error by the bank. He keeps it and disappears. AAAAAND it's gone.
http://www.cnbc.com/id/102136731?trknav=homestack:topnews:2
Think she is good in bed?
I think he already has a dildo haflway up any savers ass.
So the dollar, yen, euro and pound all walk into a bar and say "hey open a tab for us, don't worry we're good for it"
Not directed at you homie. ;)
I think so maybe, but that was a long time ago....Now...not so much
Fuckers are trying to charge my son fucking 9.73% interest for a short term student loan. Time to sell a kidney.
ah, they see the failure of ZIRP and want to create the illusion of value in their SDRs.
I think my crappy bank offers better % than that, but I gave up trying to get even .000000001% from them long ago.
The answer to the debt, QE, derivatives, and everybodies problems is the same!! Zim-Bucks!
Fuck You Christina Stick that up your ass.
Nobody goes up her ass anymore. It is too crowded.
0.05% = Money for nothing and checks for free.
Hell, they'll even throw on Lagarde and blo.
But all is not lost, you get a complimentary canister of tanning lotion...
If I was the IMF I'd be more concerned about the return of their principal than the return on their principal.
Because that's just what the world needs- more loans. The rate doesn't even matter any more. They can't pay them back.
The IMF is the Payday Lender of the world.
If I was the IMF I'd be more concerned about nailgun
Indeed. Let's hope there is a snowplow &/or nailgun in the near future for all bankster scum.
If I was the IMF I'd be more concerned about my-
fuck it. Why would I be concerned? I am funded by some of the most wealthy individuals in human history. Time to wade in amongst the chaos and fear and increase my equity share.
Fuck you peasants!
Signed,
Your soon to be feudal lords and ladies.
It's really not a big deal when a single small island country is creating claims from real goods and services from thin air.
Now when the entire planet starts doing it, well, that's something else altogether.
It's like musical chairs but they don't stop the music while the chairs keep getting removed. Everyone keeps thinking it has been going on for so long that they are winning, while there is only one chair left and a lot of people walking.
When does the music stop?
IMF as paydaylender for the world is actually a really damn good insight NoDebt.
Yes, you are 100% bang on.
30 yr bond up almost half percent ... 10 yr note up 2/10 percent ... yields be going down
Gov-Co International really does believe in a future global economy based entirely upon accounting fraud.
0.05% =Profit Center ?????
HA HA HA HA !!!!!!!!!!!!!!!!!!!
I think I just pissed myself
Fortunately my monetary insurance policy just dropped to $16.50 an ounce.
This will not hold, you can not punish the few savers that remain.
.....as she gives us all the finger.
thats funny ... I just happen to have something for skeletor as well ... it rhymes with noose.
She's one dominant bitch looking for pay piggies (that would be us).
IMF is flapping her kebab.
I would love to sleep with her. I think she is sexy. Who doesn't like an experienced, savvy business woman? I know, you guys hate her but I think she is extremely hot.
By "business woman" you mean lawyer right? There's a difference. I know it is kind of hard to tell these days, but it is true.
Whatever. I'll bet she is fantastic in bed.
Probably. All those years of practice to get to the top.
Hillary thinks so.
I thinks she likes it in the back door. Be careful.
Her pussy probably looks like a badly wrapped doner kebab.
with a face like a dried up and parched camels cunt and a fucking twat that reeks like a supporating cancerous tumescent bil bursting she would probably suit you down to the ground
Anyways the SDR will never ever work. Until you get a mortgage on your house in SDRs, people will never need it in everyday life. This would only happen if the plan is to mandate a domestic policy of ALL foreign currencies as legal tender in the US.
never say never ... but you are right nonetheless
Total value of all SDRs?
$318 billion (US)
barely enough to buy a cup of coffee on global scene
and with US the biggest swinging d!ck in the IMF ... doubt that will change
http://www.imf.org/external/np/exr/faq/sdrallocfaqs.htm#q3
http://www.imf.org/external/np/sec/memdir/members.aspx
Basket of Dollar, Yen, Euro and Pound??????
fiat is fiat is fiat is fiat...
Astute.
Ok time for you to get back to work now.
Yup, backed by Force and the biggest combined consumer market on earth. Seems to work.
Hey girl, you're asking for a grudge fuckin
"...the whole world has essentially gone insane."
It may be that there are too many various radionuclides/voc's in the air and that is not good for children and other living things.
Drugs are baaaad.
My business plan is to borrow one trillion dollars from the IMF at their rates and then raise the money to pay the loan back by issuing bonds at Germany's rates. Whats that? Plebes like me can't get in on this stuff?
The new 0 is 0.05%. Kind of limits exposure don't you think. Shiiittt.
.05%, and not even .001% lower! We're super cereal about that!
MR PUTIN
MEET
MRS SOROS
The wrath of unintended consequences .
The dream of Igor
"Sheeple wear Wolfskin !"
See
https://www.academia.edu/9031355/The_Were-Sheeples_Almanac
http://andreswhy.blogspot.com/2014/10/were-sheeples-almanac.html
When does the euro-douchebag leave the IMF? I thought the IMF was about to hold election again, wtf? Why is this bitch still jerking us off
with her Uber diva wants and needs? If the IMF was headed by a male
we would not tolerate this diva stuff coming out of Legarde every business quarter. I, for one, don't think she likes the word 'no' anymore. I think Lagarde is on her way out.