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We're Not Sure We Have Enough Money, Says Imf

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http://uk.reuters.com/article/2011/09/10/uk-imf-funding-idUKTRE7887C120110910

(Reuters) - International Monetary Fund resources could prove to be sorely lacking if global financial conditions worsen and more countries turn to the global lender for financial rescues, IMF staff said in an internal document.

IMF staff estimates of the amount of money the IMF might need to lend out in a worst-case scenario have risen by more than a quarter since June, according to a copy of the internal document obtained by Reuters on Friday.

While the IMF could comfortably commit to lending about $390 billion (245 billion pound) without putting its balance sheet at risk, in a worst-case scenario it might need to lend about $840 billion, the September 7 document said. That is up from the roughly $640 billion that staff had estimated in a worst-case outlook in June.

This is not the sort of thing I like to read as I have my breakfast

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Who lends to the lender of last resort? ...erm, SDR, have you met IMF?

When the whole world is heading for an insolvent lock up, SDRs are like borrowing from the fairies. Still, if it keeps the wheels turning, no one will question it. Welcome to Alice in Wonderland.

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Lending out money? Providing more debt to solve a debt problem?

Good to see the minds at the IMF are top notch ... :lol:

Have they yet realised the 'money' they have is actually contributed by nations who have themselves long ago run out and just printed it or lectronically credited their central banks? None of it is real earnt wealth atall!!!

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This was just the sort of thing I like to read over breakfast. Even the IMF needs a bailout.

no-one needs a bailout.

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Still, if it keeps the wheels turning, no one will question it. Welcome to Alice in Wonderland.

Most economists/politicians seem to have no problem in believing six impossible things before breakfast.

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Lending out money? Providing more debt to solve a debt problem?

Good to see the minds at the IMF are top notch ... :lol:

There isn't a debt problem.

There's an imbalances problem.

* Rich hoarders/poor debtors

* Corporate savings/govt. deficits

* US trade deficit/Chinese trade surpluses

* German surpluses/piggy deficits

etc etc.

Rebalancing is the solution e.g. Chinese inflation, piggy defaults on German hoarding; Corporates investing domestically; trade tariffs and so on.

This 'debt is the problem' meme is popular in gold bug parts but it's nonetheless wrong.

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Corporates investing domestically; trade tariffs

Once you understand that this ain't going to happen, then you will see that debt is the problem.

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There isn't a debt problem.

There's an imbalances problem.

* Rich hoarders/poor debtors

* Corporate savings/govt. deficits

* US trade deficit/Chinese trade surpluses

* German surpluses/piggy deficits

etc etc.

Rebalancing is the solution e.g. Chinese inflation, piggy defaults on German hoarding; Corporates investing domestically; trade tariffs and so on.

This 'debt is the problem' meme is popular in gold bug parts but it's nonetheless wrong.

and yet, each and every class of your picture, has problem with paying down debt.

Imbalances are brought about by debt...imagine if China wasnt heavily invested in at the beginning of their success....no, bankers are there as they are here, Greece and the US of course...they are everywhere...So trade slows down a bit, so "stimulus" has ended, that doesnt bother a debt free economy.

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I'm more worried about if the European Union and by that I mean German savers have the money and the will to bail out the PIGS who are happily wallowing in their debt.

Edited by crashmonitor

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  • 343 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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