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IMF Prepares For "Threat To International Monetary System" Submitted by Tyler Durden on 03/24/2011 19:20 -0400 Belgium Ben Bernanke European Union Greece International Monetary Fund Ireland Italy Liquidity Swaps Sovereign Debt
Back in April 2010, before Waddell and Reed sold a few shares of ES, effectively destroying the market on news that Europe was insolvent, we
made the following observation: "The IMF has just announced that it is expanding its New Arrangement to Borrow (NAB) multilateral facility from its existing $50 billion by a whopping $500 billion (SDR333.5 billion), to $550 billion." Little did we know that our conclusion " something big must be coming" would prove spot on just a month later after Greece, then Ireland, then Portgual, and soon Spain, Italy, Belgium, and pretty much all other European countries would topple like dominoes tethered together by a flawed monetary regime. Well, based on news from Dow Jones we can now safely predict the following: "something bigger must be coming." As if the IMF's trillions in open lending facilities (many of which have recently been adjusted to uncapped) were not enough, we now learn that the world lender of last resort (which in theory is the Fed, but apparently Bernanke has been getting a little shy lately so is offsetting his direct lending directives to secondary organizations like the IMF, leaving the Fed with only USD liquidity swaps) is about to activate a "Special Funding Pool" - Dow Jones explains: "The International Monetary Fund is expected to soon activate a special funding pool that will boost the fund's ability to prevent or resolve economic crises, two people familiar with the situation said Thursday. One of the people said the activation of the funding--which can only be made by a special request from the IMF managing director to the board--was in anticipation of an expected wave of new IMF programs, including the possible expansion of the Greek bailout package." Wonderful. Global financial cataclysm rinse repeat all over again...
More from Dow Jones:
Activating access to the funding pool could provide assurance to the market of the IMF's ability to backstop any major funding crisis amid ongoing fears that Europe's sovereign debt woes will worsen.
The IMF board recently approved a boost to the so-called New Arrangements To Borrow, bringing the special pool of funding to around $580 billion, adding several hundred billion dollars to the total amount the fund has to tap. According to the IMF, the pool of supplementary resources are only to be activated when " needed to forestall or cope with a threat to the international monetary system." Although no request has been made, markets, analysts and economists say rejection by the Portuguese parliament Wednesday of a belt-tightening budget all but sealed the likelihood Lisbon will request aid from the IMF and the European Union.
Bottom line: there is a new threat to the
international monetary system which means Europe May 2010 redux is imminent.
US taxpayers: our condolences.
http://pajamasmedia.com/blog/doj-source-gov%E2%80%99t-muslim-outreach-jeopardized-active-terror-investigations/ True Finns Leader: "Greece Will Default As Efforts To Keep Country Afloat Have Failed"
on 05/05/2011 09:27 -0400
Finland Greece Trichet
This does not sound like the sound of European consensus: "The leader of Finland’s euro-skeptic True Finns party, Timo Soini, said Europe’s crisis-handling mechanism “doesn’t work” and Greece will default on its debts as efforts to keep the country afloat have failed. He spoke today in a phone interview with Bloomberg Television." More like the sound of inevitability...We wonder how this will be spun by Trichet. In the meantime, things in carry land are getting worse and worse, as the USDJPY hit 79.60 overnight, a level at which the Japanese economy joins Europe and the US in full contraction mode. The summer of central bankers' discontent is coming fast and furious.
BEIJING GOLD EXCHANGE is now the BEIJING BULLION TRANSFER GROUP
Asia's silver appetite to help extend bull run
http://in.reuters.com/article/2011/01/19/idINIndia-54251820110119 http://in.reuters.com/finance/commodities Workers enter Japan reactor for 1st time since blast
TOKYO (Reuters) - Japanese workers entered the No.1 reactor building at the crippled Fukushima Daiichi nuclear plant on Thursday for the first time
since a hydrogen explosion ripped off its roof a day after a devastating March 11 earthquake and tsunami.
Oh and thank you Ms Clinton. I will when necessary. VIDEO