What a lovely organisation the IMF is.
While we are told there isn’t any more cheap credit anymore, the IMF has it by the bucket load. I’ve noticed it over the last few weeks announcing it’s open generosity to ‘help’ countries. So it’s lending to people that have no money.
The old story.
Meanwhile in the credit-less world, the FED lowers interest rates making it cheaper to borrow credit that doesn’t exist when we have been told that it was low interest rates in the early 2000′s that tempted people to take out loans that they couldn’t afford.
My view remains that interest rates do need to come down significantly – and quickly,” Prof Blanchflower told an academic audience in Canterbury – source
One would have thought that if your feet are been eaten by piranhas, the first thing you do is get your feet the hell out of the water. I’m obviously wrong. The best thing to do is immerse your legs too – obviously!
Meanwhile Hungary whose banks I don’t think invested in the US sub-prime market to any great extent is also being bailed out.
The British govt is borrowing in the light of a lack of credit and yet spending loads in “rescuing” banks who still have no credit. A year ago, people wondered why the hell the govt was bailing out the Northern rock rather than just let it fail. It was totally illogical from an economic thing to do then and of course something shady was going on. It should have been allowed to collapse into its own funeral pyre. So why did Darling put about £2000 of debt on every Brits head in saving NR?
It couldn’t be because by taking the first most difficult step along the way to defraud people that they could then say “we have to continue now or we’ll have wasted all that money on NR last year.” – could it?
From a business point of view it was always the obvious choice to let NR collapse. Once it collapsed, then pick up the pieces. But this wouldn’t have left people scared that they would lose their jobs and homes, so it wasn’t done.
All these gambling dens should be allowed to crumble. It is not in ANY citizens interest to allow these financial pirates to be allowed to be in business. I can’t believe the governments have bought their toxic debts and then thrown credit at them. Now I read the average USan is something like $70,000 in debt, and that’s before all other debts are included.
Does anyone really believe that the village idiot Bush/bLiar/Brown/Skaro.Barelustonly and so on actually have power or influence over what’s happening? They always act in a reactionary manner, indicating there are string pullers working the system and working the glorious “leaders” too.
But back to the lovely IMF.
Big picture digesters know when you take a loan from the IMF, your in BIG trouble. IMF = Instantaneously Monetarily Fooked.
Now the IMF, the European Central Bank and other EU institutions are going to have to step in and support the Hungarian economy with multi-billion dollar loans, and the price they will demand is likely to mean harsh economic reforms and cuts in government spending. – source
People need the IMF like a hole in the head. Governments know IMF loans really crish their civillians. We’ve seen this virtually EVERY time countries borrow from the IMF. IMF loans are supposed to put the debtor in a situation whereby he cannot repay. That way the debtor nations cedes control over important aspects of the countries economy.
But where does the IMF get this credit/issuance of debt from? Doesn’t it come from member countries? But those countries like the UK are already borrowing heavily. Why are they giving a loan to Hungary for pity’s sake?
Not only that…
“The US seems to be keen to push Pakistan towards the IMF”
Sartaj Aziz, former finance minister – source
“Iceland’s central bank has raised its key interest rate to 18% from 12%… part of its agreement with the International Monetary Fund, from which it borrowed $2bn (£1.3bn).” – source
People need the IMF like a hole in the head.