Uncle Sam To The Rescue: IMF Creates New European Bail Out Facility, The "Precautionary And Flexible Credit Lines"
And here comes Uncle Sam:
- IMF APPROVES CREDIT LINE PROGRAM CHANGES TO PROVIDE LIQUIDITY
- IMF CREDIT LINE CREATES NEW SOURCE OF FUNDS FOR MEMBER NATIONS
- IMF ADDS EMERGENCY FUNDING TOOL TO ASSIST COUNTRIES IN CRISIS
- IMF NEW CREDIT LINE AVAILABLE FOR SIX MONTHS TO TWO YEARS
- IMF CREATES PRECAUTIONARY AND LIQUIDITY LINE
- IMF SAYS ACCESS UNDER 6-MONTH LIQUIDITY LINE COULD BE UP TO 500% OF MEMBERS QUOTA
And here is the math: Italy's quota is 7,882.3SDR; Spain is 4,023.4 SDR. Multiply by 5 and you get 40 Billion and 20 billion SDRs respectively, which translates to $61 billion and $31 billion. A total of $91 billion in additional capacity? And that's it: enough to fund Italy and Spain for... two months. This is the best the regime can come up with?
Good thing America can get its own house in order so it can go out and fix the world next, not with one, but two credit lines. Incidentally, absent the US ratifying these two credit lines they are as good as useless because with 17.7% of the total allocation, the US is the defacto lender of only resort (since this is used to bail out Europe, which effectively means Europe will not be lending into these credit lines). And good luck passing a global bail out vehicle through the Frankenstein monster that is the US legislative body.
And the final nail why this move is completely irrelevant:
The IMF board of governors agreed December to roughly double quotas from around $375 billion to around $750 billion. But out of the 187 member countries, only 17 have legally accepted the increase, including Japan, the U.K. and Korea. Most of the countries with the biggest quotas, such as the U.S., China and Germany, haven't yet gone through the legal process, such as parliamentary or congressional approval, need to hand over their promised dues.
Q.E.Dead
The precautionary Credit Line:
Precautionary Credit Line The Precautionary Credit Line (PCL) has been established to provide effective crisis prevention to members with sound fundamentals, policies, and institutional policy frameworks that have no actual balance of payments need at the time of approval of the PCL, but moderate vulnerabilities that would not meet the FCL’s qualification standard. Members may request an arrangement with duration of between one and two years. Access under an arrangement with one-year duration shall not exceed 500 percent of quota, with the entire amount being made available upon approval of such arrangement and remaining available throughout the arrangement period subject to an interim six-monthly review. Access under an arrangement with a duration of more than one year shall not exceed 1000 percent of quota, with an initial amount not in excess of 500 percent being made available upon approval of the arrangement and the remaining amount being made available at the beginning of the second year of the arrangement subject to completion of the relevant six-monthly review. Purchases under PCL arrangements are repayable in 8 quarterly installments 3¼ - 5 years after disbursement.
And the Flexible Credit Line:
Flexible Credit Line The Flexible Credit Line (FCL) has been established to allow members with very strong track records to access IMF resources based on pre-set qualification criteria to deal with all types of balance of payments problems. The FCL could be used both on a precautionary (crisis prevention) and nonprecautionary (crisis resolution) basis. Members may request either a one-year arrangement with no interim reviews, or a two-year arrangement with an interim review of qualification required after twelve months. Upon expiration, the Fund may approve additional FCL arrangements for the member. Access is determined based on individual country financing needs and is not subject to a pre-set cap. Purchases under FCL arrangements are repayable in 8 quarterly installments 3¼ - 5 years after disbursement.
Source: IMF
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Wow, the size of that toilet paper roll...
Size matters--how big is this IMF credit line?
Hope and Change!!!!!
Hope there's someone willing to change this tarbaby's diapers.
One baby wiping the other; US fiat print to save US EU-exposure.
End the FED, End the IMF. Fuck 'em.
Strauss Khan was about to hold press conferences blowing the lid out of the euroscam, but he was suddenly stopped dead in his tracks by a very damaging investigation:
http://www.dailymail.co.uk/news/article-2062870/A-prostitute-told-took-1...
Now we know why Berlusconi resigned.
Nothing about the fact that they will SAVE CHRISTMAS?!
2 months is just enough for santa claus to make us sing happy happy songs!!
Credit Line: infinity
zombie banks backstopping zombie countrys creating a zombie earth, the feds job complete.
fuckin santa is easier to beleive in.....this fucking hocus pocus.......honestly are there a bunch of educated fucking morons sitting around table saying..yeah thats the ticket...how does one convince ones self that any of this bullshit will work...or is it a matter of..."ya know the shows over....lets just take the general lee out for one final mega leap and print till it lands.....
”To the wicked, everything serves as pretext.” -Voltaire
Trillions of CDS with nothing to back it: kEurope's Voluntary Haircuts?, CDS Market Sham & B of A: Less Than Zero
The Disappearance of Chivalry - George Santayana & Murder By Joystick
Everything Is Fine: Move On - There's Nothing Here For The 99%
MF Global is a fractal in a frying pan.
So what do we do with the guilty? It's simple really: Chum! Who wouldn't jump at the chance to watch Nancy Pelosi try to outswim a 25' Great White?
Tell her there's a juicy stock tip on shore and the shark won't stand a chance.
The MMA AND MSNBC crowd will lap it up. Any entrepreneurs out there?
Drop them off at the Great Pacific Garbage Patch
The IMF has to raise captial to do that, to do that they have to sell bonds, considering that no one is remotely interesting if the IMF, ECB, ESEF or whatever lettered acronym spins this. It doesn't change one thing.
Europe is a piece of shit to invest into and this mess is exactly what happen when you kick the can down the road. Does anybody remember the crisis in the early 90's at all. They printed then and this is the result. Worse, uglier and madder than last time.
So let them announce what they want in the attempt to catch the falling knife of EU exposure.
Nobody seems to be discussing all that poison waiting in the US with the mark to market removal three years ago. Currently there isn't a single big bank that could keep the lights on if the real estate bubble was included as part of reality.
US tax increase (read as- whats left of the "middle class") in....3...2...1
When ya try and squeeze blood out of a turnip you might get water.
Shit, I have no fucking money. all that is left is my soul and my ass and my soul belongs to Jesus.
And what about Japan? Talk about a nightmare. We live in pretend world.
Raising capital is so last century. The new trend is to print needed capital. in a couple years, the hot trend will be using the printed capital as toilet paper
I heard the ink they use gives you an anus-rash. Useless, even as toilet paper.
The latest in tutor style is fully furbished with a WorldCom styled den, a BreX papered kitchen and the rest of the house is done in US T-Bills, Civil servant pension release forms and US Dollars.
Central bankers are up against the wall. When cornered, their only ammunition is to fire pallets of $100 bills. Their mantra is inflate or die.
And this is just the first baby-step in the direction of one IMF Consol to bind them all.
ZIRP4EVA!
QE3 has just begun. Tyler, it may add up to only $60 billion, but in another 3 months, it will be another $80 billion.
This facility is more like TARP. The material flow will be in the swap lines.
The Treasury may have difficulty putting up the pennies, but the Fed will not think twice about the serious weight, which has probably already begun.
Are they finally out of places to dump their toxic waste?
The people need to kill these central banks with a silver bullet.
Hello global QE.
Pure and simple. Your logic is flawless.
Give me inflation, or give me death!
Or at least let me pepper spray some bitchez!
Vampires - IMF
http://www.youtube.com/watch?v=jquscqfs-XE
They'll gain the world but lose their souls
They'll gain the world but lose their souls
Don't believe politicians and thieves
They want our people on their bended knees
Pirates and robbers, liars and thieves
You come like the wolf
But dressed like the sheep
If you go to Lagos, what you find, vampires
If you go to Kinshasa, what you find, vampires
If you go to Darfur, what you find, vampires
If you go to Malabo, what you find, vampires
Lies and theft
Guns and debt
Life and death
IMF
Thievery Corporation - Richest Man in Babylon (G-Corporation Remix) http://tiny.cc/x9pji This is a good song for the post 9-11 police state
Did you really mean "Hope FOR Change?"
Duplicate...sorry...
The problem with banknotes is that they make for very poor toilet paper. I suspect this is intentional.
and they are only "flexible" when they have a generous wipe on them
If you soak them in aloe juice they do a much better job.
Just try to use new canadian 100's, But for contents analysis they're excelent with that transparent window.
Hence the reason I have converted some of my FRN's into toilet paper. You gotta keep your wife happy after the SHTF. She'll be happy for quite awhile.
Hey, probably you hit the motherlode, just rent big warehouse and store it, this thing is about 4x inflation. You have to be vigilant though and see the inflection point when we switch to left hand washing our asses.
THIS SYSTEM IS SO MOTHER-FUCKING CORRUPT!
Phew, got that off my chest. Got stopped out on a few of my positions over that bull-shit rumor.
Man, can somebody just pull the trigger, light the fuse, yank the pin, or set the timer and blow this world economic bitch to hell so we can pick through the pieces and start over again? Please? This shit is getting really old.
Almost as big as GE's tax return for 2010. Go long WY.
Monetary is their middle name.
This will be the excuse for the Black Friday consumer confidence equities ramp? A little early, unless Brian Sack has a party to get to with the interns.
"Monetary is their middle name."
I thought it was motha.
What's in a name?
Ah, the rumor du jour.
And now the endless parade of rumors begins!
There are funds with trillions fully invested, and they will be calling news outlets and writers across the globe to plant rumors that they will use to spike the electronic kool aid known as the equities market. Add to that a few $10 - $20 million S&P futures contract orders and you get a nice 80-100 Dow point surge.
Expect it to happen almost daily for the next week or two.
They have too much to lose - but they are going down anyway.
When there's no more money just say there is-- it's what any good ponzi does.
The fundamental problem the Money Masters now face is that they've truly created a snake eating its own tail syndrome.
I am not saying this will adversely affect them, but I am saying that printing more fiat, conjured from thin air, at zero cost basis, an then leveraged many times over, has very little success (I'd argue none) of restoring the confidence in the global economic system that kicking the can relies on.
I've never before specifically said that they're out of time before today.
The reason that they're out of time is that the inflationary pressures of conjuring more fiat from thin air in an alleged bid to bail out the cancer-ridden, debt saturated sovereigns that they proclaim they're trying to rescue is simply going to destroy purchasing power on a higher than 1-to-1 ratio, given the amount of debt and leverage and the deteriorating organic economic fundamentals (high unemployment, high private/public debt/low confidence/extreme pessimism/low rate of investment) that currently exist.
Now, having said that, I and many of us obviously don't believe that saving the system is truly their goal, and we get into Hayek's boom-bust cycle here, which others who attribute more malicious intent to the Money Masters (those in control of the fractional reserve banking racket levers) would call Harvest rather than boom-bust, in which case, the true end goal is to ensure another round of asset collections at fire sale prices.
Saving the system isn't their goal; saving themselves is.
I agree, but then I have to defend that position from those who throw out accusations of 'conspiracy theory.'
This is about stripping more of what is little sovereignty away from individual nation-states (they give up their utilities, land, toll roads, etc.), in which case, having the IMF (the global entity that it is) is wholly symbolically appropriate.
This is all just history repeating/rhyming. The names of the entities involved may or may not have changed, but the tactics, now at least 250+ years old, are exactly the same (the boom-bust meltdown and harvest).
Keynes international currency, whether it be named the bancor or SDR, is ever closer to coming into fruition by the day.
I'm not coming after you at all, but don't you think that what we see could be explained by a desire to protect the status quo, greed, and pride? Hubris is a bitch, after all.
I honestly don't think they have any interest in saving the system.
I will go one step further; I think they're inducing a crash, and schemes such as utilizing the IMF is just another step in the direction of creating the more globally integrated levers of financial control over former sovereign nation-states (the Fed or ECB isn't up to the task anymore, and whether that's by design or not is an interesting question).
Then again, I could be:
1) a conspiracy theorist
2) cynical
3) paranoid
4) a realist
I go back and forth.
In my 20 years in public education, I watched really stupid "leaders" (adminstrators, bureaucrats, consultants) do really stupid things en masse. I realized that none of them were trying to "destroy" pubic education even as they made it worse year after year. They just liked money and attention, were full of self-confidence, and were honestly not very bright.
However - I also watched powerful people behind the scenes who wanted a share of the money that for 150 years has been spent on public ed. These were the people who designed and steered education "reform" initiatives.
I go back and forth.
I often mention this simple hypothetical to friends when discussing the mechanics of fractional reserve banking:
If you are able to create money out of thin air, at zero cost basis, would you be willing to loan that money (i.e. fiat) out to anyone and everyone who wanted to borrow it, given that you have zero risk of loss if even 100% of the loans you make default, and if even one loan peforms, you have booked a profit?
[Taking this one step further, to the extent that many of the loans made will be securitized by real estate, construction equipment, factories, farms, etc., you'd almost have to be insane to WANT THE SECURITIZED LOANS TO PERFORM, since you're getting those assets for free in the event of a default, since your cost to loan the fiat you created from thin air was $0]
Things are definitely not what they appear to be on the surface.
I can't imagine how very powerful individuals and groups could not be fully cognizant of what's going on. I guess part of me doesn't want to confront the level of evil required.
In his book Between Two Ages released in 1970, Zbigniew Brzezinski praised Marxism for being “a victory of reason over belief,” and delighted in the prospect that America’s shortcomings would be overcome by “deliberate management of the American future.” He called for a “community of nations” and longed for the creation of a centralized “world government” that would merge nations and mankind together in a centrally managed economic system under total control of the elite.
Brzezinski wrote in his 1970 book (p. 309), “In the economic-technological field, some international cooperation has already been achieved, but further progress will require greater American sacrifices. More intensive efforts to shape a new world monetary structure will have to be undertaken, with some consequent risk to the present relatively favorable American position.”
Risk is on.
Leaders aren't trying to "Fix The Problem", they just want to get through next month, next week and live out their days ensconced in villas from which they can watch the world melt down.
They did the same thing near the end of the Roman Empire. It was about 600 years of down-time at the time, but once "money" was reinvented they easily picked up exactly where they had left off.
These families are the original corporations; immoral, immortal, detached from the ongoing human drama. They want all the money in the world and they think that eventually they will have it.
But I think this time they have a tiger by the tail. The money in question has become poisoned, and is no longer the mother's milk of their power base. Something bad happened to money.
I sense that the banking families of the world are blindly walking into the kind of devouring trap that in an earlier age consumed the gods.
Critical correction:
They want all the power in the world, which comes from owning as high a % of the inherently valuable assets that they are able to.
Money is just another tool in their toolbox to obtain power.
Wealth = inherently valuable assets.
Money = a simple tool that is fiat and allows them to purchase/bribe/blackmail/extort those who are playing by the rules of the Matrix and who can get things that they desire for them with the least amount of resistance.
And this is why you keep your powder dry. There will be more massive raids coming. You can count on it.
Ouroboros
bitchez
Agreed, that's what bubbles are for: pumping prices in assets only for the goal of wealth transfer once the bubble has popped. Let's not also forget we STILL solving debt with more DEBT.
This move however seems rather desperate and ill-timed for any real progression in their 'scheme', so I'd say it's more a feeler to see what rumors can they cycle out there now that the previous ones have run their course.
Happy Thanksgiving, Pilgrims!
Pilgrims escaped Europe so that they could...become slaves to a bail out nation in bed with Europe's Elite!!!
Ha!...History is not without a sense of irony!
does nothing to the problem
The new strategy is to come out with this drivel daily to keep markets from tanking. By the way what does "crisis prevention to members with sound fundamentals, policies, and institutional policy frameworks...." mean? Doublespeak? What it should really read is "members with suicidal fundamentals, policies, and institutional policy frameworks..." since they're likely to use the line. Or "The Flexible Credit Line (FCL) has been established to allow members with very strong track records to access IMF resources based on pre-set qualification criteria to deal with all types of balance of payments problems." "Very strong track records?" "Pre-set qualification criteria?" I like the blatant vagueness.
Am I right in assuming I'll be paying for these new lines via inflation?
The new strategy is to come out with this drivel daily to keep markets from tanking.
Great name for a MSM financial blog - The Daily Drivel. Articles like "Yes They Will". "Wait, No They Won't". "They Might". "Rumour Has It". "It's Nearly Certain" and that old chestnut - "Sources Strongly Indicate That........"
It throws consumers under the bus again via monetization. Merry Christmas!
LOL... What's that? The super committee was a complete and utter fucking failure? Oh well! Let's bailout Europe!
when you bailout Euro land, you bail out ZE BANKS...the holders of Oligarchy money line. Thats like sacred blood of holy grail of corporate welfare state capitalism.
We go on Crusade for that, we change the world, but not to defend the sheeple, to defend Oligarchical wealth. That sheeple model is now dead and discarded at the GLOBAL FINANCIAL LEVEL, the leading edge of new civilization.
What happens in nation state Congress, on red-blue divide, is meaningless, alike what happens in Euro land national parliaments. The future is clearly GS appointed technocratic governments in Euro land. Its scary but this is clearly on the cards. If the FED goes whole hog behind the IMF play, then we are there and for five-ten years; in this new casino royal ponzi hedge fund experiment.
La Garde is working extra hours at the roumor mill now? Why, no money left for alaries at the IMF?
So the cruelest creditor on the face of the planet is going to step up to the plate now? Has Cosa Nostra been invited too?
Won't see the light of day!
Did Larry Fink tell the IMF it is "Making Them Buy Italian Bonds?"
He just knew that BLK wasn't the last layer in the ponzi pie. Cue US taxpayer*
* Who happens to still be clutching at his collective sphincter from the last time he 'helped'
We saved, Jesus came, Euro jumps, no sex after marriage and black friday will be renamed to white.
Where does the money come from?
The inflation tax.
...and numerous other taxes to be announce. How nice of the American people to backstop the E.U. I am sure that the world will appreciate this kind gesture in the future. < sarc off >
check your 401K lately?
Again, more evidence that the NWO is exercising complete power and control, what sovereign nation? The American people will pay for this, no need to ask.
long pitchforks and torches anyone?
so this is why the market just went vertical. such bs.
HI(de) YO SILVER!
A bonus in every fraud bankers stocking - two per person!
Let's see how much the fag-giveaway is THIS Christmas eve.
No one will see it coming!
What will the IMF being handing exactly? Dollar Bills? Euros? SDRs?
The full faith and credit of the United States Government.
Now we see the political chain falling into place ONCE the money line is clear : Once FED goes whole hog behind this construct of FED/ECB integration via IMF, we will see, Merkel saying Ja, Ok, if Ben guarantees it then I will allow Draghi to do same.
The sesame for five more years of can kicking and all them good folks getting elected, while the debts continue to build up and unemployment hits 50%. Bt who cares the fixed market wil say DOW to 15000 and we will allow ponzi debt to generate ponzi profit for the Oligarchs.
As in the MAdoff scheme : when the number of NEW entrants get fewer than the number of junkees on the fix the ponzi collapses. How will the BRICS react to this ponzi US/Euro alliance? Do they have a choice?
I know Japan doesn't. Its all in along with USA. Also will the US HFs now dare to hit the Euro/US alliance. Will he FED ZIRP fund ninja HFs who tear into a construct that Uncle Sam officially promotes? No HF has ever questioned the level of UST/bond issues interest yield as unsustainable...amazing if USD were not reserve. Does this projected marriage mean the EURO is now tied to USD, joint and several, against HF pirates...?