IMF Chief Warns America on “Exorbitant Privilege”, Brings Back Flashbacks To de Gaulle And The London Gold Pool

Tyler Durden's picture

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cossack55's picture

Will they then switch to Charmin?

trav7777's picture

this just shows how ROW needs the US to continue to grow debt.

Without unabated debt accumulation, there is no future for the export ponzis that comprise the "strong, sound economies" of the world.

InconvenientCounterParty's picture


Relativity bichez....

Regrdless of it's moral characterization, debt is the game.

And by the way, if one day you decide to throw a tantrum and take the ball and go home, you are indeed, a "radical" relative to the de facto rule set.

buzzsaw99's picture

It's touching how much the frenchie cares about us. :shniff!:

Sophist Economicus's picture

Yup, one thing that will NOT be Exorbitant at all will be watching that stink hole get wiped off the face of the earth in 'Europe Eats Itself - Part Three' -- coming soon to a cable news channel of your choice

falak pema's picture

It aint for the's for the USD, dummy...the pivotal role of this fiat in the world economy. You need to clean out all your orifices...

kito's picture

nothing the scum sucking imf says can ever be taken at face value. f them.

GetZeeGold's picture


Ditto for the BIS......uck them all.

16 trillion bitchez......given away......according to the GAO Federal Reserve audit.

You didn't know about that? That's too bad.......MSM hard at work again.



AnAnonymous's picture

Or, or and it is the most likely, the default event known by the US will not affect the USD in any meaningful way.

Bear with it, people lose confidence in a currency when other people refuse to accept it.

With the US extortion business, and the USD gaining value thanks to commodity resources which all countries are interested in, the end of the USD will occur when this peg extinguishes itself, that is when no longer enough commodities are to be traded to keep the USD alive.

And that is what this IMF (US extension) paid shill wants to offuscate: that a US default will not affect anything, contrary to what all their 'theories' point at.

TheJudge2012's picture

Of course Lagarde wants to make sure we don't get our house in order and keep the ponzi scheme going. When the dollar collapses the global financial crime syndicate will be happy to back all currencies with their SDRs.

Crassus's picture

Guessing she means the "exorbitant privilege" of a Roman Empire tax on the balance sheets of nations that must hold dollars against financial sense.

angmikey's picture

Past time to DEFUND the IMF. There really aren't enough words to describe how corrupt they are.

Zero Govt's picture


yes and the primary funder of the IMF is? .....the US Govt, the bankrupt US Govt no less

sorry, typo there, the main funder of the IMF is the US taxpayer (you)

Should US taxpayers sit on their arses having the US Govt rob their wage packets month after month, moan about what the US Govt is doing while they blindly accept they are sponsoring it themselves?

What would it take to knock the sleep-walking zombies (US taxpayers) out of their stupor and wake them up to the fact they are funding, sponsoring and encouraging the State to continue pissing away their money on illegal wars, State socialism/fascism and international bodies like the IMF rammed with hypocrites like Madam Retard? 

Can i suggest everyone stops moaning about the US Govt (ie. STFU) while you're funding/fueling it and paying the wages of these parasites

Stop Paying Tax... Stop Feeding the Parasites ...Stop Funding the Sewer of Society, Govt

AnAnonymous's picture

No US tax payer involved in the IMF ponzi...

dizzyfingers's picture

ILU zero gov. We're slaves if we don't rise up. Damn, where are those guillotines?!

Bob's picture

Race to the bottom! 

Watch shit break out somewhere else soon, maintaining everyone's order in line. 

Zero Govt's picture

Funny Madam Lagarde but isn't the bankrupt and completely incompetent US Govt raiding its pensioners funds for the same reasons you ran out of cash and also robbed your pensioners during your 'financial stewardship' in the French Govt not a couple of months ago?

Smacks of the pot calling the kettle black Madam Retard, uh, Legarde?

Chief KnocAHoma's picture

Hey frenchie.... zip it.

I am The Chief

oogs66's picture

And Lagarde has just the law firm the u.s. can use that would make the IMF feel better towards their primary donation provider. 

slaughterer's picture

Lagarde, irrespective of her institutional function, has a point.  The USA no longer respects the weighty responsibilities attached to possessing this "exorbitant privilege."  It is not just the IMF.  Ask the Chinese: do you know how many times Beijing has called DC in the last few weeks to say the same thing?  The US government is not behaving in a way which justifies its reserve currency privilege.  The image of Boehner overseas is of a thug, and of Reid is of a senile fool--does the world really want these people to manage its reserve currency?  On the flip side: Do the politicians even know what damage the USA will suffer if the USD is eliminated or replaced as reserve currency?   Time to get serious, otherwise the entire world, and not just China, will be decoupling from this nation of spendthrift fools.     

trav7777's picture

who gives a fuck what China thinks?  Let's let those who aren't ponzis cast stones

BobPaulson's picture

There is no viable fiat currency in better shape than the USD, so this is like telling the IMF to go into a round room and pee in the corner. They will resist every suggestion that something you can't print could be a currency, because it puts them all out of a job.

GoinFawr's picture

Erm, not even the NOK Bob? I don't mean as the world's reserve currency, but as far as a 'fiat currency in better shape than the USD'...

@ trash777777: In the creditor/debtor relationship, who holds the opinion that counts?

dizzyfingers's picture

"The entire world" hates the US. They might suffer a bit from a US collapse but they would love to see the US squirm. And wouldn't they happily join the fray involving which currency would replace the USD?

If default happens, please, all sheeple in the US, remember that all who voted are responsible for all that's happening.

Sadly. Stupidly.

giovanni_f's picture

From now on, beware of hotels, Christine.

slaughterer's picture

I think Christine has more to worry about with the legality of her past dealings with B. Taupin, et. al. in France.  No porter howling about sexual assault from Christine at a Sofitel is needed.  She is already in a healthy blackmail situation. 

scratch_and_sniff's picture

She can rape me if she wants, "once you go grey, there's no other way". I seen a photo of her arm pits the other day, supreme, ummm i love a hairy french arm pit - if i close my eyes i can convince myself its a muff.

Robert Neville's picture

Of course the French banker whore wants us raise the debt limit. She knows that if we get serious about cutting spending the IMF will be one of the first to the guillotine, let alone all of the European subsidies unwittingly paid for by the American taxpayer.

Juan Wild's picture




No surprise, I was wondering how long it would take her to boldly reveal her alliance. Christine, John, Barry - The Global Elitest Tanning Club.

Undecided's picture

You know somethings on the move when discount brokers start selling physical gold and silver like questrade, since they don't make any real money from doing so lol.

Preserving costomers Bitchez!


fishface's picture

today full of bad news again...

a cheerfull litte song came to my mind

Watching The World Go Bye Bye...just changed the by to byebye (adaptation to modern times) 

Watching the world go bye bye
Under a sunny sky
Strolling 'round the park on a Sunday afternoon
Oh how the moments fly
Watching the world go bye bye
When you're with your love
Life is a beautiful tune

roccman's picture

“Exorbitant Privilege”


Scamerica gets to bomb women and children and take whatever the fuck we want whenever the fuck we want it from anyone on the planet and stand behind "freedom" as the reason why.

Bazza McKenzie's picture

Don't raise the debt ceiling and it has some very profound results.

Since a large part of the Fed's money printing has gone to buy Treasuries, then the US Govt spends this essentially fraudulent money devaluing the $.  No increase in Treasuries and suddenly nowhere for the Fed to send all that new money. That puts a crimp on Fed money printing and actually strengthens the $US once the consequences are understood.

Now the other big buyer of Treasuries is China.  Not out of love for the US or because they think it a good investment but in order to balance their huge trade surplus they have to recycle those $s into the US. That is how they keep the yuan in line with the $.  No new Treasuries and where are they going to put those $s? Up goes the yuan relative to the $US and down go their exports.

You can understand why China is now sweating big time over the possible failure to increase the debt ceiling. They aren't worried about a devaluation of the $ relative to the world at large, just relative to the yuan and a massive stoppage in their exports.  Imagine all the the civil unrest in China.

Incidentally, if China's exports to the US are dramatically reduced because it no longer has anywhere to park excess $s, lots of opportunity to rebuild manufacturing in the US.  That actually means job growth in the private sector, though in the short to medium term it cuts jobs in the public sector and in those industries selling to the government.

This is looking like win-win.

dizzyfingers's picture

"if China's exports to the US are dramatically reduced because it no longer has anywhere to park excess $s, lots of opportunity to rebuild manufacturing in the US"

A possible silver linking to the black sub-prime/credit collapse clouds?

Time to flood D.C. with demands NOT to raise debt ceiling.

old austrian's picture

Excuse my pedantry, but it was Valéry Giscard d'Estaing who coined the 'exorbitant privilege' phrase but no matter. Perhaps Mme Lagarde thinks that the EUR is a viable alternative reserve currency but I fear she will be disappointed....

falak pema's picture

he did, but as finance minister of charles le grand; so he was his mouthpiece and he repeated what his boss said in internal meetings. The french in those days were exporting surpluses and building up gold reserves, under advice of a guy called Jacques Rueff who was an ardent gold standard monetarist. So de Gualle was waving his finger at the US and telling them I'm leaving NAto and you guys are spending too much on great society and viet shenanigans. He was right; 'cos it scared the shit out of Nixon, that his successor, Pompidou, would pull the plug on Fort Knox in 1971. France was still in export surplus and USA was in deep deficit for that age...nothing like today ofcourse. Now we are in US stratospheric exorbitance. Irrational exuberance oblige!

I am a Man I am Forty's picture

the best thing for the dollar would be not to raise the debt ceiling, she's got her hand out like the rest of them

Fascist Dictator's picture

Griffiths said in January that fiat currencies were being "printed into oblivion," and so not owning gold is "a form of insanity."

He continued saying that not owning gold “may even show unhealthy masochistic tendencies, which might need medical attention."


This is the best statement I've read in a long Nice way to start the day!

dizzyfingers's picture

If BigPharma reads your comment there'll soon be a pill for it.

Use of Weapons's picture

Bank of Moscow says its total capital adequacy ratio and Tier 1 ratio remain above BIS minimum requirements at 8.7% and 5.4% respectively, and added that it expects to deliver a net profit of 3 billion roubles for FY 2011, emphasizing that the Bank of Moscow Group has met every covenant on its public debt and never defaulted.


MOSCOW, July 29 (Reuters) - Bank of Moscow avoided a Eurobond default on Friday as its annual report revealed 105 billion roubles ($3.8 billion) of provisions for doubtful loans sent it into the red in 2010.


If Bank of Moscow had failed to present 2010 accounts by the end of July, it could have violated covenants attached to some$2.5 billion in eurobonds, allowing bondholders to demand immediate repayment.


It isn't trillions, but I hadn't seen this mentioned. Note that BoM is only 7th in Russia in assets, down from 5th.

Thorlyx's picture

Actually, the quote "Exorbitant Privilege" is from then FinMIn Valéry Giscard d'Estaing in 1960.


Jimmy Carter was right's picture

This is all very frightening, really.  A gold standard and a new reserve currency in the making.  This is where the Aldous Huxley/George Orwell scenarious start from.

Goatboy's picture

Dubious as Soviet economy/sociology textbook?

While US debt markets remain calm with little move up in yields, it must be remembered that the Federal Reserve has been buying US treasuries (with digitally created money) to lower overall interest rates and thus stimulate lending and this may be artificially depressing US interest rates.


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