Posted on 11/27/2011 8:23:04 PM PST by Mariner
The International Monetary Fund is being lined up potentially to help Italy and Spain amid growing fears that a European rescue scheme will not be able to prop up the countries, it emerged last night.
Reports in Italy suggested that the IMF is drawing up plans for a €600 billion (£517 billion) assistance package for the country. Spain may be offered access to IMF credit, rather than a rescue package, to avoid it being “picked off” by the markets in the coming weeks.
(Excerpt) Read more at telegraph.co.uk ...
Ulysses Everett McGill: Damn! We’re in a tight spot!
Well, if we owe (for example) China 500 billion, and China owes Russia and England 250 billion each, and England and Russia owe us 250 billion each, can’t we sort it all out with collapsing the system?
You’re describing the crux of the “credit default swap” fiasco: “Half-trillion, half-trillion, who’s got the half-trillion?” SOMEBODY had the money, a LOT of it, loaned it out, and wants it back no matter how obfuscated the money trail got. “Can I borrow $10, but you only give me $5, so I owe you $5 and you owe me $5 so we’re even?” doesn’t work.
Debt is not going to “bail out” any nation running a trade deficit.
It doesn’t work that way.
A nation has to make things, then export those things.
Has to. A nation will not grow by borrowing. Never.
Did not China like Pimco bail out much of it’s holdings?
How The Fed Could Force A Euro-Crisis Solution In Just A Matter Of Hours
Simone Foxman | Nov. 28, 2011, 9:32 AM
[quote]Jefferies strategist David Zervos is back again with new recommendations about how the U.S. could step in and save the global economy.
This week: threaten complete disaster if EU leaders don’t act right away.
Akin to what he said about the matter last week:
The game in Europe is as we have described many times before - the Germans want budgetary control throughout all of Europe and the rest of EMU wants Eurobonds. Its a game a chicken with the entire global financial system on the line. The US should not allow itself to become a casualty in this Euro chicken game.
Zervos previously proposed that the Federal Reserve buy massive amounts of EU sovereign bonds, but acknowledged today that it engendered a “bailout culture” that Americans won’t be too happy about. Now he says there’s actually another way:
So here is another approach that may appeal to the “no bailouters”. We could have the Fed cut the USD swap lines with the ECB effective immediately. This would accelerate the game of chicken to the point where a euro financial market crash is basically hours away. Either the ECB monetizes and they begin to issue Eurobonds or the entire Eurosystem falls apart - its that simple. If the US forces the Germans to blink and we get monetization and Eurobonds then its a win! If the Germans don’t blink, then US the just nationalizes its own systemic BHCs and watches Europe fall into depression while executing a massive QE3 program to save our own economy. In the later scenario, we print up a whole bunch of USDs to buy up distressed European assets (in fact that worked out pretty well for us back in 90s with the Asian crisis). Either way, we bring this whole painful and annoying saga to a close so we can get on with business of technological advancement and real economic growth.[/quote]
Read more: http://www.businessinsider.com/us-threatens-immediate-meltdown-to-save-europe-2011-11#ixzz1f0mXVVvk
Bingo. The running under-discussed theme behind all these bailouts and “job creation” is: from individuals to nations, wealth must be created to survive. No net wealth creation = demise.
WE’RE ALL GONNA DIE!!!!
Bout damned time, too.
US supplies the IMF with 17% of it’s funds.
I wanna know just ONE thing:
where did CHINA get MONEY to loan to ANYONE?
You know you are preaching to the choir, right? lol
We as voters and taxpayers stood idly by as our government created an environment that was safe for bribery and corporate/government collusion.
What sane person thinks that it is a good idea to allow the same companies to run banks and investment brokerages?
Banks were allowed to lend out 10 or 20 times as much as they had in deposits on the condition that they do so conservatively. Brokerages were allowed to gamble wildly with the limitation that they would have a hard time leveraging those bets.
We allowed our government to create monsters, or sit idly by while they were being created. These monsters have the leverage of banks and the investment portfolios of aggressive hedge funds.
What sane person couldn't see the harm in that?
What sane person tried to stop it?
I didn't. I was too busy worrying about gay marriage, illegal immigration and taxes. Certainly those are things we all need to spend some time worrying about. Meanwhile the fox has got in the henhouse, has eaten all the chickens, and is starting to get hungry for human flesh.
they do now...
LOL
good one.
t
Pretty Close to 1.2 trillion!!!
How does one save anything using debt?
Just asking.
Oh no we’re broke, quickly send us a trillion borrowed money!
lol
Thanks. The WSJ ran an Op-ed that put America’s high end figure at about $800 billion if I recall correctly.
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