First we learn the LTRO may be €1 trillion, then €10 trillion, now the IMF tells us it has misplaced $1 trillion. The world may be going totally broke but at least it does in style - in perfectly round 12 digit numbers.
- IMF SAID TO SEE POTENTIAL 2-YEAR FINANCING GAP AT $1 TRILLION
- IMF SAID TO SEEK RAISING LENDING RESOURCES BY $500 BLN
In other words, even after it "miraculously" procures this money, the IMF will still be half a trill short. But, with everyone broke, just who will "fund" the IMF shortfall? Hm, could the fact that stocks are rising indicate that the ultimate buyer will be none other than the global central banking cartel. In other news, with every passing day we learn just how correct our thesis has been for the past 3 years: the it is not a liquidity crisis, it is all about solvency. Or rather insolvency. Global insolvency.
More on this farce from Peter Tchir.
This is starting to be more and more like a bad Austin Powers movie.
Why should this group of unelected, many appointed based more on their political connections than their qualifications deserve so much money?
This was a cute and slightly prestigious entity when it helped channel the charity of big rich nations into small developing countries. Whatever their mandate was, this is now getting ridiculous. On the other hand, I will admit that at least they attempt to due their job with diligence as opposed to the IIF which has to be the entity with the least credibility (usefulness) that has somehow found itself thrust in the middle of developing plans.
The list of countries the IMF wants money from is almost comical. Japan is right up there. Of any country listed that may at some point need their own bailout, Japan is front and center. The bears are lining up to take a poke at JGB's. Most have been burned from time to time over the past 20 years shorting JGB's, but the stars do seem to be aligning for a shot.
Yesterday we rallied on news that China remains weak enough to need stimulus, yet here they are on the list of countries expected to make the IMF savior of the world (technically, they can't save the world until they create their own central bank, but how far off can that be?).
Brazil, Russia, and India all see to have enough of their own issues that stepping up their IMF contributions seems unlikely.
I assume the oil-exporting nations we are asking are the ones that we aren't going to embargo in 6 months (or just as soon as we don't need to buy their oil)? Or maybe it is the countries where the rulers (not really leaders) buy private jets with hot tubs, yet many of their people have a standard of living that most Europeans would consider appalling.
On the other hand, the market is either too long, too mature, or just realizes the likelihood of this happening (nil) that it couldn't even bother to jack up stock futures much. Kind of dull when a good old fashioned trillion dollar rumor can't cause much of a spike.
If 2011 was the year of "broken" markets, then 2012 is shaping up to be the year of "apathetic" markets.