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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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In his newsletter. Nothing earth shattering, but he questions Rickards position ON SDR's and his comments about German Gold. Rickards past cooperation with TPTB appears a tad shady. Willie does slap the KWN boys, Robotrader should love that.
Much obliged. I wouldn't be surprised if Rickards is deeply entwined with the Defense Dprt or/and Pentagon.
Civil discourse is nice eh? My previous comment(s) withdrawn.
Agreed. I'd hate to think that Rickards would endorse a 2-tier Gold market.
OMFG, Somebody shoot me.
DIAF please!
Haven't read many posts on this site, have you dewch?
Go peddle your 2nd Grade shit to the widows........
Go fuck yourself.
Your email has been entered into Zynga's database, you will recieve your billion scam emails offering free Farmville cash very shortly.
Is that you Harry? Gave up on the used sex toy store?
Print baby print!
libertarian86.blogspot.com
so should we just put the entirety of European debt on the Fed's balance sheet? What's that put 'em at?
If the ECB lends to this along with the fed, this will allow for stealth monetization
World currency here we come!
thank you sir for your recent purchase of time.... please consider 2 things
1. how much time does it buy
2. how much time do you need
source?
The markets seem to have gone apeshit on the news... And I was thinking about closing short positions are reap the profits. Pigs and hogs, apparently I´m a pig.
On the bright side we have the decreasing half life of these things novadays: before the weekend we´re prolly back to red numbers.
"And that's it: enough to fund Italy and Spain for... two months. This is the best the regime can come up with?"
Well, this is the best the regime can come up with for the next two months that is. After that, come the next shenanigans/patches/rumors/cronyism/etc.
US taxpayer will get rewarded for this with another double whammy:
.Inflationary monetary policy which will quickly be re-imported from the bailout zone
.Deflationary fiscal policy AKA Austerity to pay for it!!!
Whammmmyyyy one!!!
Whammmyyy two!!!
Biflation Nation
For those waiting for the sign that TPTB are going to print, this is it. In a crisis mode, two months is an eternity.
Don't be paper short on some kind of desperation or moral logic.
"Acronym debt" is infinite until the governments themselves fall.
Oil sees the future.
oooo...Obama can cancel the US payroll tax break and just fund the IMF directly with the new revenues!
Cue up song;
"Happy Days are HERE again!"
This makes a mockery of the idea of free markets!
Calamity is certainty! Plan and prepare accordingly!
as expected. We are at the breaking point, if we werent the facility would be 100 times bigger.
Comical. The US is broke. One broke country bailing out another bankrupt country. Devaluation of the US dollar should get people to dump dollars, which means ever more worthless printing by the Federal Reserve. Sure not boosting the GDP.
More Bernanke money games which will end in tears.
SDR's backed by hollow empty promises and dry monetary wells. Lets mark all the SDR's to fantasy and sell the chit to all the world as something of value. Worth exactly equal to the integrity of the oligarchy backing them. Those same meglomaniacs who would shake'n bake their own mothers; family members to save their own hides. What a cluster flocking black hole of empty promises from the rat bastards. Kevlar underwear is on all these miscreants holiday wish list.
If Italy and Spain agree to pay in another 10bn to the IMF, they can get another 50bn back, no?
Well enough to get the trading robots excited for few minutes for sure......
Looks like the "euphoria" this time lasted less than a half hour.
Pathetic.
But we got a five-minute bump from the news! Doesn't that count for something?
"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? Are you SERIOUS?"
Tyler - spot on. NOTHING would have been better than this. Dangerous times now.
It's interesting that they honestly call it "bail out" fund.
Took about 10 minutes for the algos to realize that this is actually an extrememly horrible event and begin their ramp down.
ES back under 1,190
impossible to impovrish the world by reducing debt! i promise all, high, higher, highest inflation! good thing all in china are sleeping!
http://www.fxstreet.com/news/forex-news/article.aspx?storyid=874d9784-4e...
The IMF has stepped up. This is big news and is a solid reason for a risk rebound. It's a new precautionary credit and liquidity line It has been rumoured/discussed It can be upto 500% of members' quota Can be used up to 24 months. Cover any risk off trades, this should last.
BWA HA HA HA HA
What's a 1000% of $91 Billion?
91000B pissed off pitchfork laden, foamed at the mouth, puss excreting wimps! oh well, just a fantasy!
My questions are ;
1). Who voted these IMF members in ?
2). Who votes Central Bankers in>and allows them to call the shots.
3)...Did your democratic vote count....?
Oh....You didn't get one.?
And you don't mind that...???
Revolution Bitchez.......
US Dollar distruction in on with Bernanke. The only solution is everyone to dump dollars and degrade US debt,. Time to bond buyers to attack US debt now. Bernanke will continually degrade the dollar.
Oil will keep going up priced in US dollars.
One thing about the IMF - they have decades of experience at impoverishing nations through unsupportable debt.
Looks like the announcement was made for Headline effect. 500% and 1000% look good in a situation where leverage is king:-)
The crazy thing is that Central Planners are working intensely to prevent deflation, but deflation is what we need to come out of the recession/depression. Fuck the serfs and save the bankers. It won't work though, it just papers over the problem for awhile and creates a bigger mess for the future (if you can imagine a bigger mess).
Japan has at least 3 nuclear reactors in some sort of problems/threats of ongoing meltdowns yet they're one of the first to sign on to doubling how much they give to the IMF? I guess its easy if they can print.
Wow, time to add some USD to the stew - who thinks this will stop the contagion from spreading to our shores.
I think we are about to get another Euro short squeeze.
But I thought they said China and other BRICs would keep the Euro finance ponzi going????
I love this logic. The IMF is backed by bankrupt sovereigns, and they are the lender of last resort. They are not the lender of last resort, but rather a supranational agency that can simultaneously devalue all member currencies at once. The only ones that really pay for this are people on a fixed incomes/wages and investors who are positioned against devaluation.
I think this is likely just a bail out for France in return for Sarkozy leading the charge on bombing/overthrow of Iran. The PIIGS will only get enough money to keep French banks solvent .
The IMF Board members aGREED to double quotas.
I tell you these guys/gals are FUCKING DELUSIONAL.....
The fucking phsycos are running the asylum, and not many seem to care......
TURN OFF THE FUCKING TELEVISION...!!!!!!!!!!!!!!!!!!!
Its so obvious when CNBC's Liesman....woops, he's on again. comes out smiling with a script to read. So its down to the IMF to the "rescue", pathetic, the ol' SDR story. Sooner or later it has to come out that its a Metal that's needed, either that or go ahead and just add the Two Decimal Points to a USD now
This has been discussed and posted on before. To be clear re: the IMF now coming in with their Remedy, doesn't fool, is not acceptable by countries I call EastBloc [not a geographic mark], its basically the BRIC & BRICETS
No coincidence the 4 countries using forms of QE are the same 4 countries that make-up the SDR. In percentages you can see its mostly the USD & the EURO, and the remaining 20.7% a dash of YEN and UK's Pound Here are the Numbers:
EURO = 37.4%
USD = 41.9%
YEN = 9.4%
UKPound = 11.3%
http://en.wikipedia.org/wiki/Quantitative_easing
After 2007More recently, similar policies have been used by the United States, the United Kingdom and the Eurozone during the Financial crisis of 2007–2010. Quantitative easing was used by these countries as their risk-free short-term nominal interest rates are either at, or close to, zero. In US, this interest rate is the federal funds rate. In UK, it is the official bank rate.
In JapanThe original Japanese expression for quantitative easing (??????, ry?teki kin'y? kanwa), was used for the first time by a Central Bank in the Bank of Japan's publications.
Get these mother fuckers out of this goverment and in jail. This is another fuckin bailout for the Jewsih banking criminals. and nothing more.
Just what insolvent countries need: more debt...
IMF doesn't print because they have no printer. Someone else will print and give the conterfeit money to the IMF.
they print SDR's!
The most hilarious part of all this is the wording ... "members with sound fundamentals, policies, and institutional policy frameworks" ...
Call me crazy, but it seems to me if they were "all that" they wouldn't need any help, now would they?
Go ahead .... call me crazy.
$91 billion times how much "magical" leverage?
10 to 1? 12 to 1? Can you say $1Trillion?
And the rubber stamp US congress will rubber stamp approval after the usual posturing and pontificating.
All that was important is that we bounced off the lows of yesterday with a vengeance. Just needed one more little headline.....it will soon be forgotten.
When will the bulls get the real money printing promise they desire? Not till we really fall apart.
WANT ME TO PROVE IN A FEW SENTENCES THAT THESE FUCKING BANKERS ARE RETARDED...!!!...= MENTALs
I will mainly use thier own words to dicredit thier sanity.
"Precautionary Cerdit Line"
The Precautionary Credit Line (PCL) has been established to provide effective crisis prevention to members with SOUND fundaMENTALs,
Well there you have it,the fucking crew are NUTS......
If you had sound fundaMENTALs,you would NOT NEED a fucking PCL.you's delusional FuckTards.
Ps....
Did I vote for you's...???
Does this mean that the IMF is buying Draghi's threat not to monetize? The game of Chicken between the ECB and the vigilantes gets interesting:
http://thechinonomist.blogspot.com/2011/11/dont-call-me-chicken.html
Someone please contact the Society for the Prevention of Cruelty to Cans!
would the party in this monopoly money circle jerk farce, that is not already uber broke and has much to lend, would you please come forward?
(crickets)
anybody?
(crickets)
no?
(crickets)
that's what I thought.
so why wont the goddam euro go down?
How can Geithner commit us to a Euro bailout scheme when we have 2% Real GDP growth and staggering debt?
U.S. Q3 GDP Revised Down To 2%, Europe Continues Down Ski Slope, New Home Sales Projected to Fall 1% MOM
http://confoundedinterest.wordpress.com/2011/11/22/u-s-q3-gdp-revised-do...
Brother can you spare a "bailout?"
?---> What was the most used word in 2009, 2010, and 2011?
Answer----> BAILOUT
bailouts and rumors of bailouts, that all we got left folks.
S&P 100 point decline confirmed by bearish headlines----> check!
1180, Start buying----check!
Another "Bailout" story to steal short sellers money and goose market for santa rally---check!
Off topic...
MF Global Unloads Metals Investment to J.P. Morgananother replay set-up? sounds like what was found months after the Bear Sterns take-out:
http://solari.com/blog/the-bear-stearns-buy-out-100-fraud/
Bear Stearns Buy-Out . . . 100% Fraud
“How Bear Stearns stock was artificially collapsed so that illegal insider-traders would make billions and J.P. Morgan would be paid $55 billion of US taxpayer money to shore up themselves and buy Bear Stearns at bankruptcy prices.”
Do you really think any ZH reader has the slightest interest in your drivel?
exactly why the the elites in europe fix anything when the american kleptocrats will fix everything
Currently in the debt squeezing / crowding out other debt stage. Next up, the "print 'n' seize" phase.
FOMC minutes released early before Comex Close.
Manipulation "never" ends !
Lead story in Spiegel:
Europe running out of moneyThe euro zone is in a double crisis: investors are pulling their money from countries as well as banks - while there is an urgent need right now [for money].Without a radical signal of [a change in] policy [Europe is] threatened with a downward spiral of fear and ever new debt.
http://www.spiegel.de/wirtschaft/unternehmen/0,1518,799308,00.html
There is no way Dr. Merkel is going to allow the ECB to turn on the printing presses, and thank God for that. At least the Germans have retained their sanity.
Should be a real interesting next couple of months ;)
Never trust what Merkel says. Never believe what was written in DER SPIEGEL.
Actually the can give them trillions.....who will know. This reminds me alot of the SNL Eddie Murphy skit where he gets handed things for being white. "Go ahead take it"
this is about as confusing as it gets
Why do you think Obama instituted the Christmas Tree Tax ?
Time to BTFD !!! ..... Don't fret over the manipulation - make money at it :)
There has been studies completed regarding emotional behaviour of market participants. When people feel that they are certain there is only one way for things to go, that's the best time to reverse. Think about all the negative news that has been hitting the markets recently :
It's always darkest before the dawn.......... The establishment thinks it is now time to RAM the shorts. They'll push up prices on the shorts while they're sleeping off their hangovers on Friday morning.
more debt ,which cannot be repaid, confiscates all property and infrastructures! once all is taken, they take you! that is the endgame!
This was PREDICTABLE. One way or the other, Ben will get to print like mad............not that it will change shit.
.
I cant find any comments from any members of the IMF about this.
Total silence.
Im guessing this is Lagarde acting unilaterally on behalf of her home nation, without any wider support.
Desperate.
$91 billion, Oh that's not alot of money!
All the money in the world is owned by Floyd Bankenstein and 4 never to be named covert buddy bankers... worldwide the money is routinely distributed to various atm's giving the entirely false impression that some other people have money too...The rumour in international intelligance appraisals is the Bankenstein may be about to shaft one or all of the covert Banker Buddies... which may be bad news for the 99.99999999999999999999999999999999999999999999999999999999999999999999999999999 recursive %
This is nonsense! They're announcing that the U.S., which is broke and a basket case itself, is going to congressionally approve and fund this. In fact, many countries have to ratify it... and they all won't. The process is going to take a long time. And in terms of improving physical conditions here on Earth this is just a more elaborate and harebrained impossibility than the ones we've been seeing for weeks now. My basic take is that the IMF is acting as the arm twister for the Fed, which is making it clear that it intends to be "the last bank standing"... before going bankrupt with the owners walking away with all the marbles.
This paradigm needs to die. -- Michael C. Ruppert
http://www.collapsenet.com/154.html