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Uncle Sam To The Rescue: IMF Creates New European Bail Out Facility, The "Precautionary And Flexible Credit Lines"

Tyler Durden's picture




 

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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Tue, 11/22/2011 - 13:02 | 1902852 Mongo
Mongo's picture

Wow, the size of that toilet paper roll...

Tue, 11/22/2011 - 13:08 | 1902883 slaughterer
slaughterer's picture

Size matters--how big is this IMF credit line?  

Tue, 11/22/2011 - 13:12 | 1902908 Ahmeexnal
Ahmeexnal's picture

Hope and Change!!!!!

Tue, 11/22/2011 - 13:13 | 1902912 tmosley
tmosley's picture

Hope there's someone willing to change this tarbaby's diapers.

Tue, 11/22/2011 - 13:20 | 1902955 eureka
eureka's picture

One baby wiping the other; US fiat print to save US EU-exposure.

Tue, 11/22/2011 - 13:23 | 1902985 redpill
redpill's picture

End the FED, End the IMF.  Fuck 'em.

 

Tue, 11/22/2011 - 13:37 | 1903062 Ahmeexnal
Ahmeexnal's picture

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.

Tue, 11/22/2011 - 14:03 | 1903198 Sudden Debt
Sudden Debt's picture

Nothing about the fact that they will SAVE CHRISTMAS?!
2 months is just enough for santa claus to make us sing happy happy songs!!

Tue, 11/22/2011 - 14:11 | 1903225 trav7777
trav7777's picture

Credit Line:  infinity

Tue, 11/22/2011 - 14:18 | 1903256 fourchan
fourchan's picture

zombie banks backstopping zombie countrys creating a zombie earth, the feds job complete.

Tue, 11/22/2011 - 15:54 | 1903777 smlbizman
smlbizman's picture

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.....

Tue, 11/22/2011 - 13:52 | 1903131 TeamDepends
TeamDepends's picture

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?

Tue, 11/22/2011 - 13:53 | 1903144 redpill
redpill's picture

Tell her there's a juicy stock tip on shore and the shark won't stand a chance.

Tue, 11/22/2011 - 14:16 | 1903249 TeamDepends
TeamDepends's picture

The MMA AND MSNBC crowd will lap it up.  Any entrepreneurs out there?

Tue, 11/22/2011 - 14:00 | 1903179 TheAkashicRecord
TheAkashicRecord's picture

Drop them off at the Great Pacific Garbage Patch 

Tue, 11/22/2011 - 13:27 | 1903010 CPL
CPL's picture

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.

Tue, 11/22/2011 - 13:35 | 1903054 Confused
Confused's picture

US tax increase (read as- whats left of the "middle class") in....3...2...1

Tue, 11/22/2011 - 13:42 | 1903094 The Big Ching-aso
The Big Ching-aso's picture

 

 

When ya try and squeeze blood out of a turnip you might get water.

Tue, 11/22/2011 - 14:57 | 1903475 LouisDega
LouisDega's picture

Shit, I have no fucking money. all that is left is my soul and my ass and my soul belongs to Jesus. 

Tue, 11/22/2011 - 13:36 | 1903059 redpill
redpill's picture

And what about Japan?  Talk about a nightmare.  We live in pretend world.

Tue, 11/22/2011 - 13:48 | 1903118 Comay Mierda
Comay Mierda's picture

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

Tue, 11/22/2011 - 14:39 | 1903376 Gief Gold Plox
Gief Gold Plox's picture

I heard the ink they use gives you an anus-rash. Useless, even as toilet paper.

Tue, 11/22/2011 - 14:41 | 1903386 CPL
CPL's picture

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.

 

Tue, 11/22/2011 - 13:20 | 1902956 Beatscape
Beatscape's picture

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.

 

Tue, 11/22/2011 - 13:28 | 1903015 NotApplicable
NotApplicable's picture

And this is just the first baby-step in the direction of one IMF Consol to bind them all.

ZIRP4EVA!

Tue, 11/22/2011 - 13:37 | 1903061 Beatscape
Beatscape's picture

QE3 has just begun.  Tyler, it may add up to only $60 billion, but in another 3 months, it will be another $80 billion.

Tue, 11/22/2011 - 14:00 | 1903182 narnia
narnia's picture

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.

Tue, 11/22/2011 - 14:18 | 1903255 Mike2756
Mike2756's picture

Are they finally out of places to dump their toxic waste?

Tue, 11/22/2011 - 13:29 | 1903025 PaperBear
PaperBear's picture

The people need to kill these central banks with a silver bullet.

Hello global QE.

Tue, 11/22/2011 - 13:36 | 1903057 dwdollar
dwdollar's picture

Pure and simple. Your logic is flawless.

Tue, 11/22/2011 - 13:39 | 1903075 TheAkashicRecord
TheAkashicRecord's picture

Give me inflation, or give me death!

Or at least let me pepper spray some bitchez!

Tue, 11/22/2011 - 13:21 | 1902965 redpill
redpill's picture

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

Tue, 11/22/2011 - 13:32 | 1903036 TheAkashicRecord
TheAkashicRecord's picture

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

Tue, 11/22/2011 - 13:24 | 1902989 wombats
wombats's picture

Did you really mean "Hope FOR Change?"

Tue, 11/22/2011 - 13:24 | 1902990 wombats
wombats's picture

Duplicate...sorry...

Tue, 11/22/2011 - 13:17 | 1902935 agent default
agent default's picture

The problem with banknotes is that they make for very poor toilet paper.  I suspect this is intentional.

Tue, 11/22/2011 - 13:18 | 1902947 Ahmeexnal
Ahmeexnal's picture

and they are only "flexible" when they have a generous wipe on them

Tue, 11/22/2011 - 13:43 | 1903095 The Big Ching-aso
The Big Ching-aso's picture

 

 

If you soak them in aloe juice they do a much better job.

Tue, 11/22/2011 - 13:20 | 1902958 Eally Ucked
Eally Ucked's picture

Just try to use new canadian 100's, But for contents analysis they're excelent with that transparent window.

Tue, 11/22/2011 - 13:21 | 1902967 Beam Me Up Scotty
Beam Me Up Scotty's picture

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.

Tue, 11/22/2011 - 13:28 | 1903016 Eally Ucked
Eally Ucked's picture

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.

Tue, 11/22/2011 - 13:46 | 1903115 Stack Trace
Stack Trace's picture

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.

Tue, 11/22/2011 - 14:33 | 1903253 fockewulf190
fockewulf190's picture

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.

Tue, 11/22/2011 - 14:27 | 1903298 GenX Investor
GenX Investor's picture

Almost as big as GE's tax return for 2010.   Go long WY.

Tue, 11/22/2011 - 13:06 | 1902857 hedgeless_horseman
hedgeless_horseman's picture

 

 

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.

Tue, 11/22/2011 - 13:12 | 1902905 el Gallinazo
el Gallinazo's picture

"Monetary is their middle name."

 

I thought it was motha.

Tue, 11/22/2011 - 13:29 | 1903022 Newsboy
Newsboy's picture

What's in a name?

Tue, 11/22/2011 - 13:04 | 1902859 ghostfaceinvestah
ghostfaceinvestah's picture

Ah, the rumor du jour.

Tue, 11/22/2011 - 13:24 | 1902972 Mugatu
Mugatu's picture

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.

Tue, 11/22/2011 - 13:04 | 1902860 AldoHux_IV
AldoHux_IV's picture

When there's no more money just say there is-- it's what any good ponzi does.

 

Tue, 11/22/2011 - 13:16 | 1902932 TruthInSunshine
TruthInSunshine's picture

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.

Tue, 11/22/2011 - 13:19 | 1902948 ghostfaceinvestah
ghostfaceinvestah's picture

Saving the system isn't their goal; saving themselves is.

Tue, 11/22/2011 - 13:25 | 1902986 TruthInSunshine
TruthInSunshine's picture

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.

Tue, 11/22/2011 - 13:27 | 1903011 Spastica Rex
Spastica Rex's picture

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.

Tue, 11/22/2011 - 13:33 | 1903035 TruthInSunshine
TruthInSunshine's picture

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

Tue, 11/22/2011 - 13:41 | 1903088 Spastica Rex
Spastica Rex's picture

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.

Tue, 11/22/2011 - 13:50 | 1903122 TruthInSunshine
TruthInSunshine's picture

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]

Tue, 11/22/2011 - 14:06 | 1903207 Spastica Rex
Spastica Rex's picture

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.

Tue, 11/22/2011 - 14:58 | 1903489 JR
JR's picture

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.

Tue, 11/22/2011 - 13:21 | 1902969 Caviar Emptor
Caviar Emptor's picture

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. 

Tue, 11/22/2011 - 13:44 | 1903101 blu
blu's picture

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.

Tue, 11/22/2011 - 14:56 | 1903476 TruthInSunshine
TruthInSunshine's picture

They want all the money in the world...

 

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.

Tue, 11/22/2011 - 13:27 | 1903012 tekhneek
tekhneek's picture

"...in which case, the true end goal is to ensure another round of asset collections at fire sale prices."

And this is why you keep your powder dry. There will be more massive raids coming. You can count on it.

Tue, 11/22/2011 - 13:28 | 1903019 TheAkashicRecord
TheAkashicRecord's picture

Ouroboros 

 

 

bitchez 

Tue, 11/22/2011 - 13:32 | 1903040 AldoHux_IV
AldoHux_IV's picture

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.

Tue, 11/22/2011 - 13:04 | 1902864 Newsboy
Newsboy's picture

Happy Thanksgiving, Pilgrims!

Tue, 11/22/2011 - 13:19 | 1902940 Caviar Emptor
Caviar Emptor's picture

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!

Tue, 11/22/2011 - 13:04 | 1902865 transaccountin
transaccountin's picture

does nothing to the problem

Tue, 11/22/2011 - 13:16 | 1902934 SheepHerder
SheepHerder's picture

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?

Tue, 11/22/2011 - 13:25 | 1903003 Loose Caboose
Loose Caboose's picture

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........"

Tue, 11/22/2011 - 13:20 | 1902957 Mike2756
Mike2756's picture

It throws consumers under the bus again via monetization. Merry Christmas!

Tue, 11/22/2011 - 13:05 | 1902866 dwdollar
dwdollar's picture

LOL... What's that? The super committee was a complete and utter fucking failure? Oh well! Let's bailout Europe!

Tue, 11/22/2011 - 13:15 | 1902923 falak pema
falak pema's picture

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.

Tue, 11/22/2011 - 13:05 | 1902869 The Swedish Chef
The Swedish Chef's picture

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?

Tue, 11/22/2011 - 13:05 | 1902871 TradingJoe
TradingJoe's picture

Won't see the light of day!

Tue, 11/22/2011 - 13:05 | 1902872 Cdad
Cdad's picture

Did Larry Fink tell the IMF it is "Making Them Buy Italian Bonds?"

Tue, 11/22/2011 - 13:23 | 1902982 GeneMarchbanks
GeneMarchbanks's picture

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'

Tue, 11/22/2011 - 13:06 | 1902873 PicassoInActions
PicassoInActions's picture

We saved, Jesus came, Euro jumps, no sex after marriage and black friday will be renamed to white.

 

Tue, 11/22/2011 - 13:06 | 1902874 YesWeKahn
YesWeKahn's picture

Where does the money come from?

Tue, 11/22/2011 - 13:07 | 1902879 hedgeless_horseman
hedgeless_horseman's picture

 

 

The inflation tax.

Tue, 11/22/2011 - 13:09 | 1902893 LawsofPhysics
LawsofPhysics's picture

...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 >

Tue, 11/22/2011 - 13:08 | 1902886 sabra1
sabra1's picture

check your 401K lately?

Tue, 11/22/2011 - 13:07 | 1902877 LawsofPhysics
LawsofPhysics's picture

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?

Tue, 11/22/2011 - 13:10 | 1902881 rumblefish
rumblefish's picture

so this is why the market just went vertical. such bs.

Tue, 11/22/2011 - 13:31 | 1903032 NotApplicable
NotApplicable's picture

HI(de) YO SILVER!

Tue, 11/22/2011 - 13:08 | 1902884 Widowmaker
Widowmaker's picture

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!

Tue, 11/22/2011 - 13:08 | 1902885 ZeroPoint
ZeroPoint's picture

What will the IMF being handing exactly? Dollar Bills? Euros? SDRs?

 

Tue, 11/22/2011 - 13:13 | 1902909 tekhneek
tekhneek's picture

The full faith and credit of the United States Government.

Tue, 11/22/2011 - 13:27 | 1902975 falak pema
falak pema's picture

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...?

Tue, 11/22/2011 - 13:09 | 1902888 zebra
zebra's picture

let's see how long the IMF viagra could last.

Tue, 11/22/2011 - 13:13 | 1902917 a growing concern
a growing concern's picture

.... And back down now

Tue, 11/22/2011 - 13:19 | 1902951 Antifederalist
Antifederalist's picture

If it exceeds four hours call your Doctor

Tue, 11/22/2011 - 13:09 | 1902891 dereksatkinson
dereksatkinson's picture

This is effectively a bail out.

Tue, 11/22/2011 - 14:06 | 1903200 CPL
CPL's picture

Nope...they still have to raise money.  Since the bond market is fucked, it leaves one thing.

 

Print, print and print some more.

 

It is "Bullish" though, if the term hyperinflation is also used.

Tue, 11/22/2011 - 13:09 | 1902892 Out9922
Out9922's picture

It is the Season of Giving

Tue, 11/22/2011 - 13:25 | 1903001 Mike2756
Mike2756's picture

 print, print, print, print! Merry Christmas! Spikes gasoline just in time for molotov season!

Tue, 11/22/2011 - 13:10 | 1902894 TradingJoe
TradingJoe's picture

will be faded! ther is no funding except taxpayer...at this point not possible..."politics"!

most likely will be used for a another little short squeeze!

Tue, 11/22/2011 - 13:13 | 1902895 DormRoom
DormRoom's picture

As I have said.   The ogligarchs will ensure the continuity of their power, an keep the structures in tact to oppress the 99%.  Monetization is assured.

 

Only grassroot agitation & struggle can prevent the future tyranny of ogliarchial collectivism visa via big banks := central banks := politicians/lobbyists

Tue, 11/22/2011 - 13:10 | 1902896 jcaz
jcaz's picture

LOL- "conditional" means "pay us back, pretty please".....

Tue, 11/22/2011 - 13:10 | 1902897 TheLooza
TheLooza's picture

idiots. thanks for eating up my profits again you motherfucking cock suckers.

Tue, 11/22/2011 - 13:30 | 1903029 TheLooza
TheLooza's picture

Tylers, thank you for your quick math to demonstrate the futility of the IMFucking retarded facility.

 

used the pop to reshort IWM, BIDU and CRM.  Going to reclaim my zebra carcass back from the hyenas.

Tue, 11/22/2011 - 13:10 | 1902898 fizz
fizz's picture

Once again, notice where/when this news was released. Right at critical support for the market. The /es had a major bid at 1179 - 1180....nobody was going to be able to sell thru whomever was sitting there. Many people knew this one was coming just by the buyers bidding on the /es at support, taking in all sellers trying to push through support. Crooked shit

Tue, 11/22/2011 - 13:24 | 1902999 Mesquite
Mesquite's picture

Also note the even dollar level in TNA / FAZ..

(My favs) Just coincidence..Of course..

luv it...

Tue, 11/22/2011 - 13:11 | 1902899 ghostfaceinvestah
ghostfaceinvestah's picture

Short into this BS rumor.

Tue, 11/22/2011 - 13:11 | 1902900 Smiddywesson
Smiddywesson's picture

Stall through bailouts and buy gold

Stall through QE and buy gold

Stall through rumors and buy gold

I think I'm starting to notice a common theme, but since it's just tradition, it's probably nothing.  Everybody knows gold gets crushed during a deflation, that's why central bankers are buying, right?

Tue, 11/22/2011 - 13:28 | 1903021 Beam Me Up Scotty
Beam Me Up Scotty's picture

So it gets crushed, so does everything else.  The gold/gallon of gas ratio probably won't change, or the gold/food ratio. 

Tue, 11/22/2011 - 13:11 | 1902901 slaughterer
slaughterer's picture

$1.2 trillion in forced sequestration.  How much did Europe need?  What?  The same amount?  Hmm... 

Tue, 11/22/2011 - 13:11 | 1902902 swanpoint
swanpoint's picture

market boner

Tue, 11/22/2011 - 13:11 | 1902903 Global Hunter
Global Hunter's picture

Unhappy that the Federal Reserve has a monopoly on printing usd along comes the IMF...

Tue, 11/22/2011 - 13:11 | 1902904 slaughterer
slaughterer's picture

HYG likes it, SPY likes it, FAS likes it--so it must be bullish.  

Tue, 11/22/2011 - 13:52 | 1903138 Mike2756
Mike2756's picture

Banks stocks not buying it so much. It throws their debtors under the bus once again.

Tue, 11/22/2011 - 13:12 | 1902907 tempo
tempo's picture

compared to all alternatives, Treasuries are the winner.  there will be higher deficts, credit ratings will go down and rates will continue to decline. This is the lesson of the past 3 months. 'deficts don't matter' per Dick Chenny. He is right.

Tue, 11/22/2011 - 14:13 | 1903231 RickyBobby
RickyBobby's picture

look at Japan my friend. what's debt to GDP over there? and they have to intervene to keep thier currency value down. 

Tue, 11/22/2011 - 14:16 | 1903248 dereksatkinson
dereksatkinson's picture

Treasuries will eventually break and i'm willing to bet it's sooner rather than later.  We've had a rising wedge on low volume that's already over 8 trading days old...  When it finally breaks it's trend, we could easily see TLT drop 10-20 bucks as stops are hit.

Tue, 11/22/2011 - 13:13 | 1902910 Carlyle Groupie
Carlyle Groupie's picture

Ok, well it's time to pull out another great video about the OZ like world we are currently in.

The award winning 2010 documentary
http://cofcc.org/2011/11/secrets-of-oz-available-online/

Tue, 11/22/2011 - 13:13 | 1902911 slaughterer
slaughterer's picture

IMF credit line rumor

+

FOMC minutes QE3 rumor

=

Robotrader comes out of his exile in 3, 2, 1...

 

Tue, 11/22/2011 - 13:13 | 1902913 Clayton Bigsby
Clayton Bigsby's picture

Are they lending worthless dollars or even more worthless SDR's?

 

Tue, 11/22/2011 - 13:13 | 1902915 PicassoInActions
PicassoInActions's picture

You guys are here too negative.

IMF just gave us a black friday deal. Saving the planet for the half price on the first come first serve bases.

Please get your loans from IMF now before cyber monday. On cyber monday we are going to get a deal from FED ( probably with even mroe discount)

 

Tue, 11/22/2011 - 13:13 | 1902916 misterc
misterc's picture

What did you guys expect? That the global ponzi would just shut down over night?
They will print and print and print. It's that simple.

Oh, by the way, the retail price of road salt here in Germany doubled from last year. 100%. Price stabeleteeeeeee. 

Tue, 11/22/2011 - 14:21 | 1903268 Esso
Esso's picture

Why would you need road salt? Al Gore & the Global Warmists say snow is a thing of the past.

Oh, wait, I get it. This is a test, like that capcha thingy. Gimme a couple hours, I'll figure it out.

Tue, 11/22/2011 - 13:14 | 1902919 pleseus
pleseus's picture

High Ho Silver Away!

Tue, 11/22/2011 - 13:14 | 1902920 donethat
donethat's picture

Lever it x 1,000,000% cubed. Why stop at 1,000%?

Tue, 11/22/2011 - 13:14 | 1902921 HurricaneSeason
HurricaneSeason's picture

The federal reserve should lend Europe all the money they need and then some at negative 10% interest and then Europe should lend a large portion of that to the American banks at negative 5% interest and then the American banks should use that money to buy infrastructure bonds from the Federal reserve at 2%. Everybody would be happy including the Chinese and we can flood the world with much more monopoly money.

Tue, 11/22/2011 - 13:28 | 1903018 Mesquite
Mesquite's picture

Makes perfect sense..

Heh heh heh

Tue, 11/22/2011 - 13:41 | 1903085 catacl1sm
catacl1sm's picture

Are you from Worldcom?

Tue, 11/22/2011 - 17:31 | 1904255 HurricaneSeason
HurricaneSeason's picture

No, I'm running for office. It's my 10-5-2 plan. It's certainly more difficult to pull off than 9-9-9, but if the Federal Reserve collects their 2% on the front end and the payments are on the back end of the 30 year loans, then the can is way down the road again.

Tue, 11/22/2011 - 13:15 | 1902924 Zodiac
Zodiac's picture

Blessed Congressional gridlock..  Perfect

Tue, 11/22/2011 - 13:54 | 1903148 Mike2756
Tue, 11/22/2011 - 13:16 | 1902927 Caviar Emptor
Caviar Emptor's picture

US taxpayers bailout the Ponzi and get repaid with Austerity!

Great Deal!!

Just wait till those cuts really bite. Tent cities across the USA.....

Tue, 11/22/2011 - 13:16 | 1902928 uno
uno's picture

after replacing Italy and Greece PM's with GS leeches, the PTB must hold up those markets; look for Spain bond yields to soar as Italy and Greece get bought

The roadmap of who gets saved:

http://www.independent.co.uk/news/business/analysis-and-features/what-pr...

 

 

 

Tue, 11/22/2011 - 13:16 | 1902929 Mesquite
Mesquite's picture

The big dump truck just backed up to the markets...Nice.

And discreet...

Sarc/

Tue, 11/22/2011 - 13:16 | 1902931 slaughterer
slaughterer's picture

Can't wait for Simon on CNBC to shout hysterically "This is a GAME-CHANGER!"

Tue, 11/22/2011 - 13:16 | 1902933 Tsar Pointless
Tsar Pointless's picture

So glad that I am once again going to be paying to support more and more people in places I'll never see.

Throw in QE3 language in the FOMC minutes this afternoon, then we could be off to the races and visiting 1300 again on the S&P by the end of December.

"I have met Santa Claus, and he is me."

Tue, 11/22/2011 - 13:17 | 1902936 slaughterer
slaughterer's picture

Glad I bought silver/gold yesterday.

Gold > 17xx again :-)))))

Tue, 11/22/2011 - 13:17 | 1902937 dereksatkinson
dereksatkinson's picture

Treasuries are about to get murdered!

 

Tue, 11/22/2011 - 14:23 | 1903275 LawsofPhysics
LawsofPhysics's picture

Wait for it, treasuries just priced with another record low yeild, we are not quite there yet.  Plenty of suckers still buying.

Tue, 11/22/2011 - 13:24 | 1902938 traditionalfunds
traditionalfunds's picture

This announcement just means the crisis is about to become worse in a more public way.

 

If at first you don't succeed, print, print again.

 

 

Tue, 11/22/2011 - 13:18 | 1902939 ItFarmer
Tue, 11/22/2011 - 13:18 | 1902943 nyse
nyse's picture

Crash time. 

Tue, 11/22/2011 - 13:18 | 1902944 slaughterer
slaughterer's picture

Christine Lagarde boner day.  

Tue, 11/22/2011 - 13:22 | 1902949 caerus
caerus's picture

if a country has "sound fundamentals, policies, and institutional policy frameworks" it shouldn't need a bullshit crisis prevention credit line

Tue, 11/22/2011 - 13:19 | 1902950 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

So it's SDR printing then as Rickards predicted in his book.  Just not as much as he said...

 

Yet...

Tue, 11/22/2011 - 13:24 | 1902993 ghostfaceinvestah
ghostfaceinvestah's picture

Rickards book = must read, add it to your Christmas list. 

Tue, 11/22/2011 - 13:33 | 1903045 sankol
sankol's picture

I absolutely concur. Rickards book is real awesome. He is a huge proponent of a gold
backed currency. Plus most of his economic forecasts have been canny. For example, he predicted operation twist months in advance.

Tue, 11/22/2011 - 14:18 | 1903252 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

"He is a huge proponent of a gold"

 

This isn't quite accurate.  He does indeed promote a return to the gold standard as an almost inevitable outcome, but says he would prefer a strong dollar policy ala Vokler.  I've heard him say in interviews, "then we wouldnt need gold".

This is very important IMO, because you are getting information from a man whos approach is supremely practical as opposed to ideologically driven.  Compare Rickards to James Turk.  The later is another wealth of information on gold but his attachment to it makes me nervous.

 

Rickards also predicts gold holders will be taxed to death when remonitization happens.

Tue, 11/22/2011 - 14:45 | 1903406 sankol
sankol's picture

Thank you for pointing out that, I wasnt quite aware about his preference for a strong dollar. However he realises that its inevitable that the bernank will go the full hog printing away to glory, hence his support for a gold backed currency.

Yeah he had mentioned that gold would be taxed to 90% post the implementation of a newly established gold backed currency!

Perhaps that can be got around through off market assrt swaps?

Anyhow I would sometimes prefer the advise of a practical guy though its not always a guarantee that such advise holds when a potential black swan event suddenly occurs.

Tue, 11/22/2011 - 13:37 | 1903060 GeneMarchbanks
GeneMarchbanks's picture

Rickards is proving himself a major gun among prognosticators. I'm officially ordering that book of his, I believe he said, when the SDRs fail then gold is finally adopted.

Tue, 11/22/2011 - 14:02 | 1903193 oddjob
oddjob's picture

 Jim Willie has some less than positive things to say about Rickards.

Tue, 11/22/2011 - 14:27 | 1903296 GeneMarchbanks
GeneMarchbanks's picture

Oh yeah? In the newsletter or what?

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