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Does The I In IMF Stand For Idiot?

Tyler Durden's picture




 

All morning we have been blasted with 2011 deja vu stories how the IMF panhandling effort has finally succeeded, and how Lagarde's Louis Vuitton bag is now full to the brim with $400 billion in fresh crisp US Dollars bills courtesy of BRIC nations, and other countries such as South Korea, Australia, Singapore, Japan (adding $60 billion to its total debt of Y1 quadrillion - at that point who counts) and, uhh, Poland. From Reuters: "The Group of 20 nations on Friday were poised to commit at least $400 billion to bulk up the International Monetary Fund's war chest to fight any widening of Europe's debt crisis." We say deja vu because it is a carbon copy of headlines from EcoFin meetings from the fall of 2011 in which we were "assured", "guaranteed" and presented other lies that the EFSF would surpass $1 trillion, even $1.5 trillion on occasion, any minute now. Alas, that never happened, and while we are eagerly waiting to find out just what the contribution of Argentina will be to bail out Spanish banks (just so it can expropriate even more assets from the country that rhymes with Pain), we have one simple question: does the I in the IMF stand for Idiots? Why? Because this is merely yet another example of forced capital misallocation, only this time at a global scale.

Consider that the money used to bail out European banks, and thus do nothing to solve their solvency issues, but merely plug another liquidity gap, is being forcefully taken away from trade surplus countries (i.e., BRICs and assorted hangers on) which are lucky to generate this money for one simple reason: by ordinarily recycling their trade surplus, they fund their trading partners' purchasing power, or rather the purchasing power of Joe Sixpack who wants to buy the latest and greatest iCrap, in the form of vendor financing used to buy Treasurys, primarily those of the US, and keep inflation rates low. Now, instead of money flowing to where it is most needed, the IMF, as a central planners' central planner, comes along and tells its members that going forward it will tell them what is in their best interest, and if possible to please fund a lost cause: namely Europe in its current configuration.

Where have we seen this before? Oh yes: here "How The Fed's Visible Hand Is Forcing Corporate Cash Mismanagement" in which we described in excruciating detail how yet another side effect of central planning, namely ZIRP, is forcing US corporations to misallocate capital from proper capital allocation targets like CapEx, and even M&A (with its far lower IRR), and instead to deploy it to fund dividends, which is the most short-sighted use of cash imaginable. Just because Bernanke said so.

This time around, we are starting to see precisely the same thing happen at the sovereign level, and while we do not know yet just what the global trade implications will be from international capital misallocation, we know one thing: by being forced to put money into black hole A (f/k/a Europe), the BRICs will be unable to invest cash into other projects, and/or recycle it by funding deficit countries' trade deficits. We do know that the consequences will have a dramatic ripple effect on global capital allocation, most certainly not limited to US treasury funding needs.

Because if Brazil, India, China and Russia, not to mention Japan, which recently has been the second most aggressive buyer of US paper, are unable to recycle their trade surplus back into the US (and instead have to fund another quarter's losses for UniCredit, BBVA, and other failing institutions), the one question we have is: just who will buy US Treasury paper?

And, parallel to that, does this make the NEW QE more or less probable?

And, finally, is the IMF's entire ploy merely yet another way to force Bernanke back into the reliquification parade... Because remember: the only two beneficiaries from monetization are i) banks (of course), and ii) the US Treasury, which knows it will find a buyer for its deficit funding paper come hell or high water, and thus provide yet another smokescreen for American politicians to continue their ruinous ways.

In retrospect, the I does not stand for Idiot... More like Indentured.

Finally, here is Peter Tchir with his one quick "firewall" thought:

The firewall should be helping Spanish and Italian bond yields the most, yet Spanish yields were higher across the board today, and Italian bonds 5 years and out were all weaker.  If the firewall doesn't help those bonds, why should it help the market so much? 

We saw in Greece, that switching who a country owes money to doesn't solve a problem, and in fact makes it far worse for any private sector holder silly enough to think things get better.

If a patient is given a drug to cure cancer, and the cancer isn't affected, why would you think the patient is better? 

This firewall fixes nothing.  These countries need to reduce their debt load, and sooner rather than later is better.  It will come in some form of PSI, and banks will pay the price for prior mistakes, but with ECB and EFSF support, will be given every chance to make the same mistakes again, but hopefully for their new equity investors.

 

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Fri, 04/20/2012 - 14:00 | 2361780 CClarity
CClarity's picture

In a word "yes". IMHO. Eye think so. Aye Aye!

Fri, 04/20/2012 - 14:21 | 2361888 Manthong
Manthong's picture

I think it stands for INSIDIOUS.

Fri, 04/20/2012 - 14:26 | 2361913 Unprepared
Unprepared's picture

I'm more interested in what the 'F' stands for.

Fri, 04/20/2012 - 14:28 | 2361919 Buckaroo Banzai
Buckaroo Banzai's picture

Or how about INVIDIOUS?

Fri, 04/20/2012 - 14:36 | 2361929 Manthong
Manthong's picture

Yeah, that works, but upon further reflection, iniquitous seems particularly well suited.

Fri, 04/20/2012 - 14:37 | 2361955 DaveyJones
DaveyJones's picture

imp

Fri, 04/20/2012 - 19:50 | 2362758 Xkwisetly Paneful
Xkwisetly Paneful's picture

Just for clarification purposes are governments that refuse to spend within their means mis allocating capital?

Tue, 07/10/2012 - 04:15 | 2601327 nahshal
nahshal's picture

what is this imp ...i'm sorry i don't know what you say....

 

 

____

guitar flash

 

 

 

Fri, 04/20/2012 - 20:59 | 2362872 bluebare
Fri, 04/20/2012 - 14:36 | 2361948 Decolat
Decolat's picture

Imaginary Monetary Fraud.

A thief is only an idiot if they're caught.

These thieves still run free.

Sat, 04/21/2012 - 01:38 | 2363256 palmereldritch
palmereldritch's picture

It's all good.

In light of the current bad press they will soon be re-branding and riding the AAPL wave as a smartphone App:

iMF

I think that says it all.

Fri, 04/20/2012 - 14:01 | 2361783 vmromk
vmromk's picture

No, it stands for INSANELY INCOMPETENT.

Only Bernanke is "graceful" enough to carry the moniker IDIOT.

 

Fri, 04/20/2012 - 15:08 | 2362042 Stuck on Zero
Stuck on Zero's picture

How is it that the "idiots", "incompetents", "fools" etc. that run the Federal Reserve, World Bank, IMF, and so on are insanely rich and you guys are all poor?

Fri, 04/20/2012 - 14:00 | 2361785 darteaus
darteaus's picture

IMF Global

Fri, 04/20/2012 - 14:00 | 2361787 YesWeKahn
YesWeKahn's picture

IMF: Idiot mother fu cker

ECB: Extreme con bitch

FED: fu cking elegant dick

Fri, 04/20/2012 - 14:11 | 2361824 BlueCollaredOne
BlueCollaredOne's picture

No need to breakup the word FUCK.  This is fight club, free speech is observed

Fri, 04/20/2012 - 19:38 | 2362738 John Wilmot
John Wilmot's picture

International Mother Fuckers

Entitled Continental Bitchez

Bend Over Japan

Bend Over England

Fuck 'Em Discretely

Just Pay Me

 

 

 

 

 

Sat, 04/21/2012 - 05:12 | 2363340 Element
Element's picture

ICBM  = Inter Continental Bitchez Meeting

 

G20

 

Fri, 04/20/2012 - 14:00 | 2361790 AlaricBalth
AlaricBalth's picture

IMF - Incompetent Monetary Fraud

Fri, 04/20/2012 - 14:12 | 2361853 Zero Govt
Zero Govt's picture

Incompetent is almost saying the same thing as Idiot M.F.

...both work in this context

I've a feeling Louis Vitton is going to sponsor the village idiots (global bankers) meeting in Davos next year after Christine Lagarde waved her empty one about the other day ...that'll be sooo funny ..the village idiots may not get the joke though

 

Fri, 04/20/2012 - 14:23 | 2361898 Turin Turambar
Turin Turambar's picture

I prefer IMF = International Monetary Fraud

Fri, 04/20/2012 - 14:49 | 2361988 NotApplicable
NotApplicable's picture

IMF = Intentional Monetary Fraud

Sat, 04/21/2012 - 04:55 | 2363337 Element
Element's picture

I Miss France

Fri, 04/20/2012 - 14:01 | 2361793 CClarity
CClarity's picture

IMF - I Must Finance, I M Fatal, I M Flawed   BBBB Bail Bad Busted Banks

Fri, 04/20/2012 - 14:02 | 2361795 battle axe
battle axe's picture

The "I" should be replaced with a "$", because they never seem to have enough of it, they need more and more and more....

Fri, 04/20/2012 - 14:22 | 2361896 mayhem_korner
mayhem_korner's picture

 

 

You're going to need a bigger denomination.

http://www.youtube.com/watch?v=8gciFoEbOA8

Fri, 04/20/2012 - 14:03 | 2361797 randomdrift
randomdrift's picture

IMF --- Self-identified Mother F-er 

Fri, 04/20/2012 - 14:25 | 2361911 Bastiat
Bastiat's picture

I, MF

Fri, 04/20/2012 - 14:28 | 2361928 mayhem_korner
mayhem_korner's picture

 

 

Aye Aye, MF.

Fri, 04/20/2012 - 14:41 | 2361968 moonman
moonman's picture

Correction

I M F'd

Fri, 04/20/2012 - 14:07 | 2361806 hedgeless_horseman
hedgeless_horseman's picture

 

 

Profits schmoffits.  Why are the other fins selling BAC today?  This is not the agreement.  A circle jerk only works when...

Fri, 04/20/2012 - 14:06 | 2361808 sabra1
sabra1's picture

peter, the IMF was created to increase the debt loads of countries. the pleebs will gladly pay all kinds of taxes to rectify this problem!

Fri, 04/20/2012 - 14:05 | 2361813 Ted Baker
Ted Baker's picture

NOT TYLER IT STANDS FOR INSOLVENCY AS DOLLARS IN TODAY'S WORLD ECONOMY ARE WORTHLESS

Fri, 04/20/2012 - 14:11 | 2361834 Ted Baker
Ted Baker's picture

SOON WE WILL SEE LAGARDE SWITCHING FROM CARRYING A LOUIS VUITON BAG TO A LOUIS VUITON TRUCK TO CARRY ON MORE AND MORE DOLLARS

Fri, 04/20/2012 - 16:33 | 2362310 Bag Of Meat
Bag Of Meat's picture

WHAAT?? I CAN'T HEAR YOU SPEAK UP

Fri, 04/20/2012 - 14:11 | 2361842 Everybodys All ...
Everybodys All American's picture

Ignorant.

Fri, 04/20/2012 - 14:45 | 2361978 Whiner
Whiner's picture

Illusory Money Fun. Keep stacking for your children, Bichez

Fri, 04/20/2012 - 14:13 | 2361848 SheepDog-One
SheepDog-One's picture

Hell I just think theyre completely out of ideas at this point.

Fri, 04/20/2012 - 14:16 | 2361870 Dr. Engali
Dr. Engali's picture

No they have one more... just have the ECB write themselves a check for 4 trillion dollars the debt will be wiped out and their balance sheet will be back to zero. Then they can start all over again. Come on SheepDog you need to get with the times on modern monetary theory.

 

And if that doesn't work buy 450 million rounds of bullets for "target practice"

Fri, 04/20/2012 - 14:29 | 2361924 SheepDog-One
SheepDog-One's picture

$4 trillion? Well hell why not just write a check for $500 trillion then?

Fri, 04/20/2012 - 14:33 | 2361941 Dr. Engali
Dr. Engali's picture

Now you're just being silly. Didn't you read a few posts back where professor Karl Whelan said if the Euro broke up then the Bundesbank would just right themselves a check and wipe out the debt? And to top it off there would be no inflation or no cost to the tax payer.

Fri, 04/20/2012 - 14:37 | 2361954 SheepDog-One
SheepDog-One's picture

Yep, theres always more fake money available to extend and pretend.

Fri, 04/20/2012 - 14:13 | 2361849 davood
davood's picture

Don't know what the "I" in IMF stands for, but IMF = "I aM Fucked".

Fri, 04/20/2012 - 14:13 | 2361852 wisefool
wisefool's picture

snarc: Timmay says the IMF loans are backed by IMF gold. Timmay says IMF gold might also be UST gold. Timmay says some UST gold might still be in the ground. The ground might not nessecarily be US ground. Timmay says ground wires are made from Copper. But with technology, they make wires out of aluminum in china for free. Timmay likes to use hypothesis like a smart scientist.

Fri, 04/20/2012 - 14:14 | 2361854 Dick Darlington
Dick Darlington's picture

Poland giving 8 billion, just can't stop laughing. Huge budget and current account deficits, LARGEST net receiver of EU funds (Greece used to be the chosen one) and they have USD 30 billion credit line from IMF themselves.

http://www.imf.org/external/np/sec/pr/2011/pr1115.htm

Fri, 04/20/2012 - 14:24 | 2361906 Deep79
Deep79's picture

Do not worry my friend. I believe the market is at the beggining stages of FINALLY reliazing all this smoke and mirrors will not work and punish the central banks.

You can only lie for so long, and 3 years is pretty damn long. 

Fri, 04/20/2012 - 14:27 | 2361918 SheepDog-One
SheepDog-One's picture

Lies are worthless when theres no one left to believe them.

Fri, 04/20/2012 - 14:51 | 2361999 NotApplicable
NotApplicable's picture

Wanna bet Benron loaned it to them? (and many of the others)

Fri, 04/20/2012 - 14:13 | 2361855 Dr. Engali
Dr. Engali's picture

 

Does The I In IMF Stand For Idiot?

 

Do we really need to ask that question?

Fri, 04/20/2012 - 14:13 | 2361858 optimator
optimator's picture

And I'm "poised" to get an interest free loan from the Fed for me to play with.

Perhaps the "I" in IMF stands for the one IMF nation that doesn't contribute, Israel.

Fri, 04/20/2012 - 14:39 | 2361958 SheepDog-One
SheepDog-One's picture

LOL! Best 'I' yet!

Fri, 04/20/2012 - 14:16 | 2361867 mayhem_korner
mayhem_korner's picture

 

 

Does anyone think Lagarde can even do math well enough to hold a Pampered Chef party?

Fri, 04/20/2012 - 14:23 | 2361891 midgetrannyporn
midgetrannyporn's picture

the one question we have is: just who will buy US Treasury paper?

And, parallel to that, does this make the NEW QE more or less probable?

 

objection your honor, ask and answer.

 

nice work TD.

Fri, 04/20/2012 - 14:24 | 2361904 mayhem_korner
mayhem_korner's picture

 

 

the only relevant question about QE is when

Fri, 04/20/2012 - 14:23 | 2361900 catacl1sm
catacl1sm's picture

Yes, duh.

Fri, 04/20/2012 - 14:31 | 2361930 Paul Atreides
Paul Atreides's picture

BRICS countries and some NAM countries are all bypassing US Dollars/Reserve by forming bilateral currency agreements. That would in effect leave those said countries with a trade surplus of US dollars to get rid of. So what to do with those surplus dollars before they become practically worthless in the next 2 years? Loan them back to the IMF for a taste of their own medicine....suprise bichez!

Fri, 04/20/2012 - 14:40 | 2361946 SheepDog-One
SheepDog-One's picture

No one wants to talk about the fact that the US Federal Reserve Note is not the world reserve currency petro dollar any longer. BRICs now trading oil and paying in gold. I guess we can just ignore that little factoid, well until it bites us like a 30 foot great white shark anyway.

I just heard a Lindsey Williams interview and he says theres not 2 years, he gave by the end of 2012 at the latest when the best use of a dollar will be fire kindling. April 15 interview at PrisonPlanet.

Fri, 04/20/2012 - 14:53 | 2361985 Paul Atreides
Paul Atreides's picture

Too many variables like Elections, QE, Euro, Bond Markets and War to make a solid prediction in my opinion, we will on the other hand see warning signs the closer we get and Tyler will be the first to report on them. I also don't take financial news from the Alex Jones Network (it is good for the latest rights and liberty infringement news I'll give him that).

Fri, 04/20/2012 - 14:55 | 2362012 SheepDog-One
SheepDog-One's picture

Yea except the only reason Id pay attention to what Williams says is hes called the previous oil action, and said things contrary to what the popular conclusions were at the time and was proven right. What I dont do is just say something is believable or not based upon a name.

Fri, 04/20/2012 - 15:03 | 2362031 Paul Atreides
Paul Atreides's picture

I'm with you on that, can you post a direct link to the interview?

Sun, 04/22/2012 - 16:32 | 2365221 KowPie
KowPie's picture

That could have been condensed down to 5 minutes and would have contained just as much info. Windbag central! The only pertinent things stated was calling Odumbo a muslim (not really new or earthshattering) and saying the $ will collapse by the end of 2012. Not world collapse, mind you, just the $. Very vague at best. I recommend saving your time and skipping this one. This post condensed it down to its' core.

Fri, 04/20/2012 - 14:55 | 2362013 SheepDog-One
SheepDog-One's picture

BTW elections mean absolutely nothing more than a sock puppet show would, the results are already decided far ahead of time.

Fri, 04/20/2012 - 15:09 | 2362043 Paul Atreides
Paul Atreides's picture

I know but it is the show, the illusion of choice that must remain in place to secure 4 more years. If there are interuptions to that process it will cause problems for central planning.

Fri, 04/20/2012 - 15:16 | 2362060 SheepDog-One
SheepDog-One's picture

And contrary to all the popular belief, I do not believe they want ObaMao in there 'secured' again for 4 more years, I believe his usefulness is done and the bankers now want a white republican face back in there so that chaos and mayhem can once again be blamed on him. Media will be free to rip a white repub to shreds for all the 'sudden new found trouble and terrible economy'...bet on it, I am.

Fri, 04/20/2012 - 15:26 | 2362112 Vince Clortho
Vince Clortho's picture

So printing Billions and Billions of Dollars has a downside?

Fri, 04/20/2012 - 14:40 | 2361961 SheepDog-One
SheepDog-One's picture

Its amazing to me how the last couple weeks BRICS developments have gone almost completely unreported, and its a huge deal.

Fri, 04/20/2012 - 14:52 | 2362000 Whiner
Whiner's picture

No,no,no, my good sir. Not in the toilet. Snitzel a little AU as the CBs knock down the price. Maybe throw a little in the toilet to gain buying time. Also by aAmerkan core industries.

Fri, 04/20/2012 - 14:44 | 2361972 BlackholeDivestment
BlackholeDivestment's picture

IMF= Illusory Mechanics of Fascism 

http://www.youtube.com/watch?v=x1_-Siqqq1A

Fri, 04/20/2012 - 14:52 | 2362006 mesje
mesje's picture

Greetings from Poland for all ZH'ers!

The thing is I just knew it will eventually happen. Same thing everywhere - total lack of sovereign decision making at the goverment level.
What the f#*k little economy of Poland is doing with this IMF thing.
This trend is global - not only USA is loosing all it was about. Unfortunately same here my folks.

The lunatics have taken over the asylum...

 

Fri, 04/20/2012 - 19:02 | 2362680 walküre
walküre's picture

mesje, plant a garden. Grow potatoes and lots of it. Stash silver and gold. You know, we've been here before. It's not just Germans that should know how defunct paper money really is. All Europeans should know. Why are we getting fucked again and again by the same old same old group?

Fri, 04/20/2012 - 15:12 | 2362038 fiddler_on_the_roof
fiddler_on_the_roof's picture

ZH stands for Zero Head. S&P 500 is laughing at ZH.

The only right things thing about ZH is about Gold. Don't worry paper Gold will drop to Zero and all ZH zombies would have sold their PHYS & other paper Gold by then.

Silver not Good. only Gold is Good because CB's have them.

 

Today is Friday and I get my opportunity to drink and rant. I want alteast 100 negative ratings..please, pretty please.

Fri, 04/20/2012 - 15:14 | 2362063 SheepDog-One
SheepDog-One's picture

Youve said nothing. Have more drinks.

Fri, 04/20/2012 - 15:22 | 2362084 fiddler_on_the_roof
fiddler_on_the_roof's picture

My favourite drinks are (1) E&J VSOP Brandy with club soda - best value only $8.00/750 ml. (1) Six Grapes Graham Porto - $16.00/bottle.

Good drinks. try it if anyone have not tried these.

Fri, 04/20/2012 - 17:56 | 2362527 20-20 Hindsight
20-20 Hindsight's picture

Hic!

Sat, 04/21/2012 - 02:41 | 2363272 MeelionDollerBogus
MeelionDollerBogus's picture

s&p500 isn't laughing at anyone.

This is what it's doing.

2012 03 26 dow vs oil | Flickr - goldpricemodel

Sat, 04/21/2012 - 00:45 | 2362090 Sandmann
Sandmann's picture

IMF like NATO has gone rogue. The Anglo-American Hubris from 1945 has finally brought their Paradigm to an end. What comes next may be like the chaos of the Thirty Years War but the IMF like the ECB and NATO is at the end of the road. So what if countries put up a few more casino chips ?

Sat, 04/21/2012 - 14:38 | 2363841 GeneMarchbanks
GeneMarchbanks's picture

After SDRs prove an epic failure it'll be apparent the BW structure is obsolete. Local currencies and barter will result unless the BRICS step in with a lending-program.

Fri, 04/20/2012 - 15:45 | 2362099 ebworthen
ebworthen's picture

 

 

I for Idiot

I for Iniquitous

I for Illegitimate

I for Ignoble

I for Insane

I for Inane

I for Irrational

I for Improper

I for ..............

Fri, 04/20/2012 - 17:54 | 2362524 20-20 Hindsight
20-20 Hindsight's picture

I for Immoral...

I for Insolvent...

 

Fri, 04/20/2012 - 15:33 | 2362133 q99x2
q99x2's picture

NWO Invasion Mf'ers.

Fri, 04/20/2012 - 17:17 | 2362419 Yen Cross
Yen Cross's picture

You make an interesting point Tyler! I wonder what the percentage of (pledged) IMF contributions (vs) actual [capture] rates over the last 10 years have been?

 Needless to say, the IMF will just pull some sort of levered scheme if their uptake isn't met.( and it won't be) Does ESM,EFSF, LTRO come to mind?

Fri, 04/20/2012 - 18:32 | 2362623 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

 

 

Insane Money Fumbling

Fri, 04/20/2012 - 18:40 | 2362632 Reese Bobby
Reese Bobby's picture

The "I" stands for, "you have to clean up the the spooge on my lips, HANK, not I".

Fri, 04/20/2012 - 19:30 | 2362725 misnomer
misnomer's picture

Apparently, our Finance minister in the GWN, Mr. Flaherty has said Canada will not contribute, and wishes a veto vote over any such demands from EU.

He's got balls, but I wonder how long he's gonna keep 'em...

Fri, 04/20/2012 - 21:07 | 2362884 engineertheeconomy
engineertheeconomy's picture

This one made me laugh

The "idiots" are the people that enable the bankers by accepting PAPER as money

"In Gold we trust", fuck paper

Once gas gets to $100/gallon people will start to wake up

 

Fri, 04/20/2012 - 23:03 | 2363033 bluebare
bluebare's picture

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Fri, 04/20/2012 - 23:53 | 2363157 boiltherich
boiltherich's picture

Just this one time I am ecstatic with an overall feeling of well being, warm and fuzzy all over, because the USA is not contributing one dime to this euro kick the can.  And that is what it is, a half trillion dollar kick the can to see the eurozone through the next six months, and it will work, but the can kicking after that will require more than a trillion and all those that lent will be screwed, but it will not be US! 

Of course this will raise the global price of oil and thus anything anywhere that will get shipped, but the bottom line to me is that the USA is not giving Lagarde a dime.  Oh I feel so hot all over. 

Just imagine if we were the largest contributor as the USA is by treaty in annual IMF contributions, they have got it up to half a trillion bucks and we would be on the hook for 17% of that if it were a mandatory contribution, like 90 billion taxpayer dollars to support the euro mistake and French socialism.  Not going over well in an election year, so every year should be an election year. 

By the way, if the spam posts of the likes of Mineo above me can't be weeded out this website will be toast in a month.

Sat, 04/21/2012 - 05:05 | 2363339 Element
Element's picture

Just wonderin', does this mean the IMF is running a deficit too?

Don't they have a budget somewhere?

Or do they just, ... you know, ... make it up as they go along?

Mon, 04/23/2012 - 01:33 | 2366028 boiltherich
boiltherich's picture

 

Probably the most important story this weekend, bigger by far than French elections and I have to go looking to page two for anything to do with the IMF.

 

Over one trillion raised to stabilize the euro and eurozone banksters.  They could have raised two trillion, three trillion, it would not matter because it solves nothing in the end.  They raised it but what can Madame do with it?  Give it to the Greeks?  The Spanish?  Will it make unemployment fall?  Will it balance budgets in austere times?  If they use it things will be even worse than now.

The problem is if money comes in to pay down any type of debt anywhere aside from production and savings, the result is inflation, it is the exact same thing for the IMF to show up with train loads of money and credit as if the ECB just printed it instead.  And that is what the Germanic north is so opposed to, the IMF in this project of theirs is attempting to inflate Europe out of this crisis and it cannot work. 

Spain for example built so many housing units that sit year after year empty with more every day from foreclosure, nobody can afford to buy them, unemployment is as bad there now as it got in the USA in the 1930's, yet house prices have not dropped a single euro.  And there they will sit till people work and earn enough to pay those peak year prices, or rot into the ground.  At least few are underwater, problem is while a house is worth what it was 4 years ago it cannot be sold, they make US mark to myth look like serious professional business.  They cannot permit any housing unit to be sold or valued for less than is being carried on the books or the whole system collapses.

This is grossly inflationary, and lest you think it be confined to the eurozone think again.  Yen, euro, yuan, dollar, pound all have been kept in a very tight trading band of one or two percent of each other for quite a while now, note that all are energy importers.  And energy has risen to near double what it was a few years ago.  If the eurozone suddenly has fiscal/financial relief they can pay more for more energy and they will.  Ditto food.  Food and especially energy are both in short supply, there is enough for now of both provided there are no major long-term catastrophes, but the stability of prices given the relative stability of supply and demand (if precarious supply in the face of steadily rising demand) is more about the quantity of money and credit out there to buy food and energy. 

What Lagarde has done is go out to the world and get the emerging nations and some of the more manic and frantic G 20 nations to pledge to create a trillion new bucks out of thin air.  For the sake of a broken eurozone with political differences that can never be settled I might add.  If Brazil, and China, and India, and Japan, and Britain, and Russia, and 60 other nations all sign on for what ever reasons each individual nation has, nearly all as a part of mercantilist greed to keep orders flowing in for their products, well it does not matter in a global energy market or food market where or why the sellers have to raise prices because a few or even many are debasing their money, the point is prices are going to rise fast for all. 

I never thought I would hear myself say this, but the move by the IMF to shore up the comatose eurozone for a little longer should be the reason for a trillion dollar stimulus in the USA as well, and I don't mean for some fat assed bankers so they can go on pigging out on caviar either, actual "bonus" money to citizens.  And we will need it, because the IMF pledge drive is going to be so inflationary that I think we could start to see hunger related illnesses in the US by this time next year.  It is bad to devalue, it is worse to take the high road and refuse to play the world's game of competitive devaluation. 

Either the books must be cleared of debt, and prices for housing dropped to a market clearing price, or we must inflate till the average entry level middle class/poor border person can afford to buy an entry level house, and it would not even take a change to the current system, just the scope of suspension of disbelief as to pricing.  The median wage has to be brought up to the point where housing is again affordable (about $40 per hour minimum wage), or housing has to be cleared at a price well below where it is now, certainly well under half  current pricing.  And the banksters will all go to slaughter only to be replaced by new banksters, maybe ones you like less than even the squiddy.  

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