World's Biggest Band-Aid...

[GRG55]

And the markets loooove it...

G20 to bulk up IMF in response to crisis

Thu Apr 2, 2009 10:48am EDT

LONDON (Reuters) - World leaders will triple the war chest of the IMF to fight the worst economic crisis since the 1930s and impose new curbs on financial markets, monetary sources at the G20 summit said.

The communique drafted for the meeting, obtained by Reuters, said leaders would submit large hedge funds to supervision for the first time and enhance regulation through a new agency and a beefed-up International Monetary Fund...

...Monetary and developing country sources said the latest draft summit communique provided for a $500 billion boost to the IMF's resources, raising to $750 billion the funds it can make available to countries worst hit by the global crisis...

...The G20 were also close to agreeing a trade finance package worth $250 billion to support global trade flows...

...The world economy will shrink this year for the first time since World War Two and tens of millions of people are expected to lose their jobs.

G20 leaders agreed that blacklists of tax havens should be published in the near future, a European diplomat said. [That'll really help bring back those jobs, eh :rolleyes:].

"The G20 has agreed that it will be the OECD which will publish the tax haven list imminently," said the diplomat, who is attending the summit in London...

...The draft communique included a pledge to deliver "the scale of sustained effort necessary to restore growth," but without making any commitments beyond the trillions already being spent to stabilize banks, shore up demand and limit job losses...

..."The most important issue is that we agree ... on the principle that no financial market product, no financial market participant and no financial market can remain without regulation and without supervision," German Finance Minister Peer Steinbrueck told Deutschlandfunk radio...

[vinoveri]

Re: World's Biggest Band-Aid...

Does anyone ever ask/wonder where all this "money" comes from?

I keep telling myself that this sham has to end, but

If the global solution is for each country's central banks to "print" as necessary and guarantee everything, from deposits to debts, liquidity and solvency, and all the "rest of folk" maintain their CONfidence in this system and the fiat currency sham, what's to bring it all down after all? :confused:

Even this idea that it all must end because "the U.S. can't keep borrowing forever" and "who will continue to lend to the U.S." is not really a hard rule. As I see it, as long as the govs and CBs collude to prop each other up (keep accepting each's currency/debt), the fraudulent system can continue, and worse can grow more coordinated (NWO and all that conspiracy "paranoia" notwithstanding) i.e., it's in their elite self-interest to mutually cooperate less they lose the confidence of their populace.

Has the outrage peaked or are folks just numb?
Instead of the anger at the injustice of the whole scam resulting in the organizing a revolution at the grassroots, I'm seeing people talk about how to "play the market" in view of the govs action, which tells me the masses are going to accept it all, and we going to witness the biggest wealth transfer in history. If you can't beat em, join em? NOT!:mad:

Did anyone else see the cover from NewsWeek a while back: "We are all Socialists Now" WFT?
Nothing like the MSM to guide us to accepting our destiny:eek:

[nero3]

Re: World's Biggest Band-Aid...

This is great news. It's good we are talking a trillion, but it should had been more. The more money they print the better I think. That way we can all get billionaires. And maybe my over-leveraged real estate can regain some luster. If peoples pensions come back because politicians print, it's going to improve confidence that in turns improve spending. The liquidity trap psychosis is caused by a fear of low inflation, but I think consumers are not looking for that big truck anymore. The reason is obviously because they think prises, especially fuel will rise, thus, meaning, that the liquidity trap in this situation is a hoax.

[btattoo]

Re: World's Biggest Band-Aid...

I'm starting to believe you're right, vinoveri. A critical mass of people will not recognize the lack of sustainability in this system unless (until) there's some catalyzing event. And the events I'm thinking of (terrorism or shortage of food/oil in the non-third world) will lead not to an honest assessment of the inherent systemic flaws but to decisions being made in panic mode. My own view is that we had a mini taste of this earlier this decade.

[jk]

Re: World's Biggest Band-Aid...

what's to bring it all down after all?

is that what you want? and how could you tell if "it all" came "down"? what are your criteria? do we need to pass through a dark age to get there?

[vinoveri]

Re: World's Biggest Band-Aid...

is that what you want? and how could you tell if "it all" came "down"? what are your criteria? do we need to pass through a dark age to get there?

Yes, I want the fiat currency scam wherein the government, in league with banks, can channel newly created $ to whomever it pleases (as it has been done and is so clearly doing now) to all come down. As EJ wants put it, paraphrasing now - "the money shows up on pallets and not everyone gets a pallet."

One criterion to judge would be a return to a hard currency standard. Another would be to witness the end of asset inflation, more specifically the end of "carry type trades" where broker dealers and hedge funds get lent fiat capital for near 0% and then chase up assets around the world (remember oil at $147 a barrel last year and gas at $4). Along these lines, if a dollar retains most of its purchasing power over the long term, that would be a good sign.

I do not want any "dark age" if analogous to "the dark ages", and I'm not clear on what you are driving at ... that the system is too big to change/fail?? What do you think, should we all be socialists now JK?

I'm all for growing the pie, but mostly I'm for freedom, plain and simple Jeffersonian freedom. Man flourishes under freedom. It's not rocket science like central banking and derivatives trading. ;) It is however strictly limiting on the powers of government and requires individuals to think, create, and realize their welfare is dependent on themselves and the welfare of their neighbors.

[jk]

Re: World's Biggest Band-Aid...

i'm just wary of the excitement some experience in contemplating [abstractly] disaster. i share your sentiments about our current system; my disappointment in this as yet short-lived administration is palpable. i think there's likely a very bad time ahead of us, and i don't look forward to the suffering that will entail.

[vinoveri]

Re: World's Biggest Band-Aid...

and hopefully most "doomers" don't relish the prospect of disaster and suffering either, and I'm not convinced that everything has to collapse merely b/c we restructure the system. We need true reform and a concomitant cushioning/safety net during the transformation, but I'm afraid we will not see the needed reform b/c of FIRE's stranglehold over the gov, and whatever nets are put in place will serve not to lift up, but to constrain.

[jtabeb]

Re: World's Biggest Band-Aid...

i'm just wary of the excitement some experience in contemplating [abstractly] disaster. i share your sentiments about our current system; my disappointment in this as yet short-lived administration is palpable. i think there's likely a very bad time ahead of us, and i don't look forward to the suffering that will entail.

Agreed, "bringing down the house" on one's own head is like cutting off your nose to spite your face. It may make you feel better, but it's still gonna hurt.

Plus, i actually want my kids to be able to go to school, be able to buy groceries at the local market... self-sufficient means growing food doing manual laundry etc. etc.

As a person who grew up on a farm, I know how much hard work it is. If everyone grew up on a farm, they might take a less romantic view of self-sufficiency. Don't get me wrong it's a great experience, but I prefer surfing the internet to shoveling cow shit any day of the week. (did I mention we had 65 head of cattle?)

[Raz]

Re: World's Biggest Band-Aid...

I grew up on a cash-grain and cotton farm, jtabeb. You are absolutely right - "self-sufficiency" is for the birds. Hoeing a garden, shucking corn, shelling peas, ah, yes - the glories of self-sufficiency! I sure hope not.

BUT, what's to worry about? Cramer just announced the "end of the depression" and says that we are now in a new Bull Market in equities.

So what's all this worry talk? I assume EJ can shut down iTulip and put his remaining 70% cash into Spyders and get rich again!:rolleyes:

[BadJuju]

Re: World's Biggest Band-Aid...

I relish self-sufficiency, but I know all too well (not from personal experience) that complete self-sufficiency is a supremely difficult task. And it is truly a fruitless endeavor when one consider the benefits of working with others in a civilized manner to achieve a good society. Self-sufficiency then, I believe, is a tool for augmenting our ability to navigate the twists and turns of the rollercoaster of civilized life.

[vanvaley1]

Re: World's Biggest Band-Aid...

And the markets loooove it...

G20 to bulk up IMF in response to crisis

Thu Apr 2, 2009 10:48am EDT

LONDON (Reuters) - World leaders will triple the war chest of the IMF to fight the worst economic crisis since the 1930s and impose new curbs on financial markets, monetary sources at the G20 summit said.

The communique drafted for the meeting, obtained by Reuters, said leaders would submit large hedge funds to supervision for the first time and enhance regulation through a new agency and a beefed-up International Monetary Fund...

...Monetary and developing country sources said the latest draft summit communique provided for a $500 billion boost to the IMF's resources, raising to $750 billion the funds it can make available to countries worst hit by the global crisis...

...The G20 were also close to agreeing a trade finance package worth $250 billion to support global trade flows...

...The world economy will shrink this year for the first time since World War Two and tens of millions of people are expected to lose their jobs.

G20 leaders agreed that blacklists of tax havens should be published in the near future, a European diplomat said. [That'll really help bring back those jobs, eh :rolleyes:].

"The G20 has agreed that it will be the OECD which will publish the tax haven list imminently," said the diplomat, who is attending the summit in London...

...The draft communique included a pledge to deliver "the scale of sustained effort necessary to restore growth," but without making any commitments beyond the trillions already being spent to stabilize banks, shore up demand and limit job losses...

..."The most important issue is that we agree ... on the principle that no financial market product, no financial market participant and no financial market can remain without regulation and without supervision," German Finance Minister Peer Steinbrueck told Deutschlandfunk radio...

Did they say anything about the consequences and punishment for breaching these issues? Or are we to enjoy the spectacle of watching a public 'mea culpa' and conviction and infliction of punsihment decided by the breaching party?

[don]

Re: World's Biggest Band-Aid...

The IMF is the Third World's corkscrew

[The Outback Oracle]

Re: World's Biggest Band-Aid...

Ya gotta love it!

I presume the Aus Prime Minister has been at the forefront of this IMF thinking and Aus will contribute....so we will go borrow some more money to give to the IMF! Makes sense to me:eek:

[c1ue]

Re: World's Biggest Band-Aid...

Let's break this down:

On the G20 side:

$250B to help trade flows
$500B more to IMF
The rest in various 1st and 3rd world bailout/debt forgiveness programs

On the other side - just in Europe:

http://www.scribd.com/doc/13111961/S...EE-Debt-200903

Can't seem to cut and paste into a valid picture format, but the numbers in the appendix would seem to be orders of magnitude larger than the $1.1T