MF poised to print billions of dollars in 'global quantitative easing'

[seanm123]

Party on Garth......


Quote// Simon Johnson, former chief economist at the IMF, said: "The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them. "The objective is to create a windfall of cash. However if everybody goes out and spends the money it could be very inflationary."//Unquote



http://www.telegraph.co.uk/finance/f...ve-easing.html

[bpr]

Re: IMF poised to print billions of dollars in 'global quantitative easing'

Party on Garth......


Quote// Simon Johnson, former chief economist at the IMF, said: "The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them. "The objective is to create a windfall of cash. However if everybody goes out and spends the money it could be very inflationary."//Unquote



http://www.telegraph.co.uk/finance/f...ve-easing.html

Can anyone explain this to me? I couldn't find any relevant links on how this would work.

Are they hoping that entities save SDRs and spend their dollars? Wouldn't more SDRs prove inflationary to each currency that the SDR is composed of, or would they change the composition of the SDR?

Sounds like a good way to blow up the IMF.

[c1ue]

Re: MF poised to print billions of dollars in 'global quantitative easing'

The SDRs are a part of the IMF structure - basically a way to create money without the Fed or US Treasury doing so.

Normally the IMF operates like a bank - the members contribute money and the IMF distributes it.

But the IMF is running dry and tough times are not the best for raising new funds.

You can either dig into the IMF charter or read something like Dr. Michael Hudson's 'Super Imperialism' book(s).

[D-Mack]

Re: MF poised to print billions of dollars in 'global quantitative easing'

I'm surprised the Russians like it

Russia proposes creation of global super-reserve currency


16.03.2009, 15.15


...


Russia believes that the “obsolete mono-polar structure of the world economy should give way to a system based on cooperation by several major centers.”

In the sphere of control and supervision Russia suggests drafting and adopting an international agreement setting global standards of control and supervision in the financial sector – a Standard Universal Regulatory Framework (SURF).

Russia calls for reforming the international currency and financial system with the aim to strengthen its stability and control. In that connection the Russian side suggests discussing the possibility of expanding the list of currencies to be used as reserve ones, on the basis of the adoption of agreed measures to stimulate the development of major regional financial centers, and also “the creation of a supra-national reserve currency that will be issued by international financial institutions.”

“It looks expedient to reconsider the role of the IMF in that process and also to determine the possibility and need for taking measures that would allow for the SDRs (Special Drawing Rights) to become a super-reserve currency recognized by the world community,” the document says.

Also, Russia in the medium and long-term is for a revision of the role and mandate of the IMF in order to adjust both to a new structure of the world currency and financial system, whose modification is to be completed as a result of the current crisis.

For the purpose of overcoming the current crisis it will be necessary to considerably increase the resources of the IMF.

“The decisions we shall make at the London summit must be not only adequate to the current situation, but also meet the requirements of a new, post-crisis world,” the document says.


http://www.itar-tass.com/eng/level2....2035&PageNum=0