IMF will run out of money if....

Discussion in 'Economics' started by IanMacQuaide, May 5, 2010.

  1. "Can the International Monetary Fund afford it if the rest of Europe’s ring of fire (Portugal, Spain and Italy, in descending order of crisis) starts to crumble? My back-of-an-envelope calculations don’t look good.

    Here’s the logic. The IMF currently determines how much it can lend to a country based on the “quota” that country provides towards the IMF’s own funding. The quota is usually more or less proportional to the size of that country’s economy, though the quotas haven’t been updated for a while so are a little out of date (but let’s not get bogged down with that now).

    The IMF is currently lending Greece €30bn (about $39bn) towards the combined EU-IMF bail-out package for the troubled nation. This is just under 32 times its quota. It is, for what it’s worth (a lot), the biggest IMF bailout in the Fund’s 65 year history."

    He goes on to say that using the same "quota" to bail out Britain would cost 506 billion. IMF's only got 355 billion in it's little money pot.
  2. pspr


    Didn't Obama pledge to increase our funding to the IMF to something like $108 Billion? We're broke and still bailing out the rest of the world. Get those spenders out of our government!!
  3. No problem...just get all the money printing machines of the world up and running, loan money to the IMF who then loans it to the failed countries. If they need more. We all print more! All is well now in bizarro land. :)
  4. Correct - anything is possible in a fiat money world.

    The ECB will now take junk debt (Greek debt) as collateral.

    The Federal Reserve's balance sheet, if marked to market, is basically insolvent. The Federal Reserve now owns loans on empty hotels, unfinished construction projects... all marked to myth.

    If a bank deems something an asset - anything, it can print whatever it deems the value of that asset is.

    Welcome to Fiat Banking in the 21st century. It's good to see mankind reach such heights of civilization and wisdom.
  5. the1


    It's kind of funny (as in comical) when you think about it. It's like a game of monopoly being made up as the game is played. Oh wait, Monopoly is more stable than what we're seeing because the properties have actual values.

    You could make up a great game board game based on what the Central Banks are doing. Hey Parker listening?

  6. Our country has printed more money to hide the fact that we are in the same boat as Greece. However, we have pushed off the ultimite depression by printing massive amounts of money, allowing the illusion of "its over" and allowing Manufactures, Consumers etc to relaxes and start to produce and spend.

    Because Greece is part of the EU, it can not print up money, like it did back in the days. It has the EURO and Germany is the key. So Greece must wait til the Euro Zone and IMF decide what to do.

    The United States could make it pass all of this, if they Euro Zone takes on the task. However, there will be revolutions if not all out wars between the EU states. The EU could very well break apart. I'm not saying it will happen but this could be the first sign of things to come with the PIGS.

    We could also be taken down fast, very fast if this gets outa control. This is far different than the Russian Currency Crises back in 1998...for those who traded that period, it was great trading with massive volitilty and millions were made.

    This goes deeper and from more reports coming out...more downgrades to happen in debt for many other EU countries and non-EU countries.

    The final nail in the coffen....for the world to collapse is if China imploded in the next 6 to 12 months.

    We are living through history! This is gona be a hell of a ride.

    And the sheeople really thought the Financial Crises was over...LOL
  7. the far east asian economies are doing very well, its the western economies which are fucked
  8. even japan?
  9. Daal


    In theory the IMF can take TARP money
  10. Emilia


    Japan is in debt to eyeballs because they too have western style capitalism that prints money with interest attached to it from the get go.

    Every single country with Private Central bank or with Foreign Private Central Bank is in debt and debt can only grow and grow
    #10     May 6, 2010