Home » Posts tagged 'imf'

Tag Archives: imf

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Innovation BIS 2025: A Stepping Stone Towards an Economic ‘New World Order’

Innovation BIS 2025: A Stepping Stone Towards an Economic ‘New World Order’

The IMF’s annual meetings held in Washington DC last week demonstrated that when the institution issues new economic projections or warnings of a downturn, the mainstream press are not averse to giving them prominent coverage. After the Fund was founded in 1944 (off the back of World War Two), it became part of what internationalists call the ‘rules based global order‘. For 75 years, the IMF has been regarded by the political establishment and banking elites as a lynch pin of the world financial system.

Contrary to what some may believe, the IMF was not the first global monetary institution. That accolade belongs to the Swiss based Bank for International Settlements, which predates the IMF by fourteen years. Its creation in 1930 was, according to the BIS, primarily to settle reparation payments ‘imposed on Germany following the First World War‘. Without WWI – a major crisis event – there would have been no mandate for the BIS to exist. Much as there would have been no mandate for the IMF to exist were it not for the spectre of WWII.

As well as settling German reparation payments, the BIS was also recognised from the outset as a forum for central bankers – the first of its kind – where they could speak candidly and direct the course of global monetary policy.

The board of directors at the BIS is taken up predominantly by the heads of the leading central banks in the world. Right now the governor of the German Bundesbank Jens Weidmann is chairman of the board. As public servants they gather in Basel every eight weeks or so for a series of bimonthly meetings, the discussions from which ordinary citizens are not privy to.

 …click on the above link to read the rest of the article…

The Club & Why the Majority Must be Always Wrong

The Club & Why the Majority Must be Always Wrong 

QUESTION: Mr. Armstrong; I did my own research on the 1998 Russian collapse. All the big names lost billions. Even the New York Times reported that George Soros lost $2 billion. You were the only one who made money so it made sense that you were named hedge fund manager of the year in 1998. My question is this. Since all the big names were involved in the Russia trade which took down Long-Term Capital Management, is this why you call them the “club” for they all do seem to be involved in the same trade?

DU

ANSWER: Correct. This is also why they try to prevent people from listening to me. They are convinced that the reason they lost was that I was too influential and had too many institutions listening to me. That absurdity is what they ran to the government with, so I was then accused of “manipulating” the world economy. They all lost after I warned them and refused to join in their takeover of Russia I believe I was given the nod by the Clintons. They told me they had the IMF in their back pocket and they would continue to fund Russia. I warned them that the IMF got their funding from governments and they were not going to back it.

The Russian financial crisis hit Russia on the 17th of August 1998. Our World Economic Conference was held in London that June. Our forecast was then published by the London Financial Times on the front page of the second section.

They did not give up. After they got the Federal Reserve to bail them out, they then focused on setting up Yeltsin and got him to divert $7 billion in IMF loans. Even CNN reported the money was stolen from the IMF.

CNN Theft of IMF Money – Sep. 1, 1999

 …click on the above link to read the rest of the article…

Argentina Is Officially In Default Again: S&P Downgrades Credit Rating To SD

Argentina Is Officially In Default Again: S&P Downgrades Credit Rating To SD

The IMF just broke its own record of incompetence: less than a year after its record, $57 billion bailout of Argentina was finalized, S&P just downgraded the country from B- to Selective Default – the equivalent to a default rating – following the government’s “reprofiling” of its debt on August 28, when it unilaterally extended the maturity of all short-term paper due to the continued inability to place short-term paper with private-sector market participants. Some $101 billion in debt is affected.

However, the selective default state will last for just one day, as only a few hours later, S&P will upgrade Argentina from SF to CCC-. As S&P explains, “under our distressed exchange criteria, and in particular for ‘B-‘ rated entities, the extension of the maturities of the short-term debt with no compensation constitutes a default. As the new terms became effective  immediately, the default has also been cured. Therefore, we plan to raise the long-term ratings to ‘CCC-‘ and the short-term ratings to ‘C’ on Aug. 30, in line with our policies.”

Here is the full summary of today’s action, per S&P:

  • Following the continued inability to place short-term paper with private-sector market participants, the Argentine government unilaterally extended the maturity of all short-term paper on Aug. 28. This constitutes default under our criteria, and we are lowering the local and foreign currency sovereign credit ratings to ‘SD’ and the short-term issue ratings to ‘D’.
  • The administration is also sending legislation to Congress seeking support from the Argentine political class to engage in a re-profiling of the remaining debt, so we are lowering our long-term foreign and local currency issue ratings to ‘CCC-‘ on heightened risk of a default under our criteria.

 …click on the above link to read the rest of the article…

Argentina Proposes IMF-Humiliating ‘Debt Re-Profile’ As It Soft-Defaults For 9th Time Since Independence

Argentina Proposes IMF-Humiliating ‘Debt Re-Profile’ As It Soft-Defaults For 9th Time Since Independence

Less than a week after we suggested The IMF is in for humiliation over the collapse of Argentina – just months after its unprecedented $56 billion liquidity crisis bailout – it appears the South American nation is set to default for the ninth time since its independence in 1816.

Amid a 20% crash in the peso and a collapse in government bonds, which pushed the implied risk of default above 80%, IMF delegates arrived in Argentina on Saturday and, as Bloomberg reports, immediately began meetings with policy makers, facing a deja vu choice from two decades ago: risk making the turmoil even worse by withholding a $5.3 billion installment due next month – or cough it up, and risk even more losses with the IMF bailout program on the verge of collapse.

“The IMF has put a lot in – not just money, but prestige,” said Hector Torres, a former executive director at the Fund who represented South American countries. 

“The fact that the arrangement is not performing well right now is an embarrassment,” he said. And the September installment is “going to be a difficult call.”

Then earlier today, things got worse as Argentina bond spreads widened to the most in 14 years after opposition leader Alberto Fernandez ripped the debt-laden country’s accord with the International Monetary Fund. Fernandez said much of the IMF loan had been wasted on financing capital flight out of the country.

In a statement following a meeting with IMF officials, Fernandez said he agreed with the objectives of the IMF deal, but added that the IMF and the current government generated the current crisis and are now responsible for reversing the “social catastrophe.”

 …click on the above link to read the rest of the article…

IMF Recommends “DEEP” Negative Interest Rates as the Next Tool

IMF Recommends “DEEP” Negative Interest Rates as the Next Tool 

The IMF has continued to assume that the zero-bound on interest rates can be a serious obstacle for fighting recessions on the part of the central banks. The IMF maintains that the zero-bound is not a law of nature; it is a policy choice. The latest in the IMF papers argue that tools are available to allow central banks to create deep negative rates whenever needed to reverse recessions. They claim that maintaining the power of monetary policy in the future to end recessions within a short time will require deep negative interest rates.

It is really quite astonishing how these people with NO REAL-WORLD EXPERIENCE keep trying to maintain the Marxist-Keynesian theory when more than 10 years of negative interest rates have failed.  This is the same theory that dominated medicine for so long. They assumed there was a toxin in the blood, so the cure was to bleed you. If you died, they assumed the reason was that they did not bleed you sooner.

These idiots fail to comprehend that negative interest rates have wiped out pensions. The instruction manual for life was to save for your retirement to be able to live off the interest of your savings. The problem was, those days were based on 8% interest rates. Moving negative will not force people to spend, it merely bankrupts the people.

Bretton Woods Is Dead: What Next?

Bretton Woods Is Dead: What Next? 

French Finance Minister Bruno Le Maire has publicly admitted something normally reserved for backroom discussion in the circles of Europe’s governing elite at an event honoring the 75thanniversary of Bretton Woods (the conference which created the foundations for the post WWII world order).

At this event, Le Maire stated ever-so candidly that “the Bretton Woods order has reached its limits. Unless we are able to re-invent Bretton Woods, the New Silk Road might become the New World Order”.

He went onto state that “the pillars of that order have been the International Monetary Fund and its sister institution, the World Bank since their inception at the Bretton Woods conference in  New Hampshire in 1944.”

Were a radical transformation not undertaken immediately, then Le Maire laments “Chinese standards on state and on access to public procurements, on intellectual property could become global standards”.

The finance minister’s statements reflect the growing awareness that two opposing systems operating on two conflicting sets of principles and standards are currently in conflict, where only one can succeed. Yet as much as he appears to be aware of the forces at play between two systems, Le Maire fails miserably to identify what the Bretton Woods System was meant to accomplish in the first place, or what type of “radical transformation” is needed to save Europe from the collapse of its own speculation-ridden system.

Le Maire dives so deeply out of reality that he actually believes that the radical transformation desperately needed in the west does not involve collaborating with the New Silk Road, but rather to strengthen the power of Brussels, while becoming more technocratic and more green (aka: de-industrialized, de-populated).

 …click on the above link to read the rest of the article…

U.S. Economic Warfare and Likely Foreign Defenses

U.S. Economic Warfare and Likely Foreign Defenses

Photograph Source: Trending Topics 2019 – CC BY 2.0

Today’s world is at war on many fronts. The rules of international law and order put in place toward the end of World War II are being broken by U.S. foreign policy escalating its confrontation with countries that refrain from giving its companies control of their economic surpluses. Countries that do not give the United States control of their oil and financial sectors or privatize their key sectors are being isolated by the United States imposing trade sanctions and unilateral tariffs giving special advantages to U.S. producers in violation of free trade agreements with European, Asian and other countries.

This global fracture has an increasingly military cast. U.S. officials justify tariffs and import quotas illegal under WTO rules on “national security” grounds, claiming that the United States can do whatever it wants as the world’s “exceptional” nation. U.S. officials explain that this means that their nation is not obliged to adhere to international agreements or even to its own treaties and promises. This allegedly sovereign right to ignore on its international agreements was made explicit after Bill Clinton and his Secretary of State Madeline Albright broke the promise by President George Bush and Secretary of State James Baker that NATO would not expand eastward after 1991. (“You didn’t get it in writing,” was the U.S. response to the verbal agreements that were made.)

Likewise, the Trump administration repudiated the multilateral Iranian nuclear agreement signed by the Obama administration, and is escalating warfare with its proxy armies in the Near East. U.S. politicians are waging a New Cold War against Russia, China, Iran, and oil-exporting countries that the United States is seeking to isolate if cannot control their governments, central bank and foreign diplomacy.

* Keynote Paper delivered at the 14th Forum of the World Association for Political Economy, July 21, 2019.

 …click on the above link to read the rest of the article…

Markets are being Lulled into a False Sense of Accommodation

Markets are being Lulled into a False Sense of Accommodation

Those who take an interest in the actions of central banks will know that the advent of Brexit and Donald Trump’s presidency has seen the direction of monetary policy gradually change in both the UK and the U.S.

Since the EU referendum, the Bank of England have raised interest rates twice, after initially cutting them and implementing a new round of quantitative easing in the aftermath of the vote. The first rate hike in November 2017 came over a decade since the bank last increased rates in July 2007.

A month after Donald Trump was confirmed as the 45th American president, the Federal Reserve raised rates for only the second time in nine and a half years. Since Trump’s inauguration, they have gone on to hike a further seven times, and over the course of eighteen months (starting late 2017) the Fed have rolled off over $600 billion in assets from its balance sheet.

As the Fed continue to roll off assets until their balance sheet ‘normalisation‘ programme ends in September, the sentiment amongst traders is that the central bank will soon begin a course of rate cuts in order to stave off the threat of a recession as the prospect of a full blown trade conflict with China and other nation states gathers momentum.

A similar sentiment can be found in the UK over Brexit. With the British economy stagnant and manufacturing and construction sectors in decline, there exists an expectation that the Bank of England will ultimately reverse course if an economic downturn takes hold.

 …click on the above link to read the rest of the article…

If Deutsche Bank Breaks $6.40 World in Trouble – Charles Nenner

If Deutsche Bank Breaks $6.40 World in Trouble – Charles Nenner

Renowned geopolitical and financial cycle expert Charles Nenner says if there was ever a global canary in the coal mine warning for the financial system, it is Germany’s Deutsche Bank (DB). Late last year, Nenner predicted if DB stock went below $8 a share, “You should be worried.” Recently, DB stock hit all-time lows and now sits around the $7.50 per share level.

Nenner warns, “I see it can hold up to late July, and then it can go to $6.50 (per share). If it breaks below $6.40, it can go out of business. So, it’s a very serious situation. . . . I think all the markets can have a bounce in a couple of days to the end of July. That’s why DB might hold up, but if it gets below $6.40, the world is in trouble.”

This is not a hyped prediction considering the IMF called DB the “most systemically dangerous bank” in the world in 2016. If DB does break $6.40, do we get a daisy chain of default around the world? Nenner says, “It is a very dangerous situation. I don’t think DB is the only one. They just got caught. I think if you look at the balance sheets very closely of other banks, especially Europe and Italian banks, you will see a lot of troubling signs also. I don’t think it’s only Deutsche Bank. It’s much more. . . . If it breaks $6.40, the downside price target is zero. If everybody watches my analysis and it does go below $6.40, everybody is going to run for the exits.”

If DB goes under with its massive book of derivatives, other banks would be in the same trouble as DB. Nenner says, “Yes, if they have to close their derivatives, who knows which bank is going to lose how much? It’s going to be a big problem.”

 …click on the above link to read the rest of the article…

IMF’s Lagarde Laments “Highly Mysterious” Low Inflation, Says “Everybody” Would Like It To Be Higher

IMF’s Lagarde Laments “Highly Mysterious” Low Inflation, Says “Everybody” Would Like It To Be Higher

Without skipping a beat, IMF Director Christine Lagarde left President Xi’s Belt and Road initiative conference and traveled to sunny southern California to make an appearance at the Milken Institute Conference, where she sat for an interview with former WSJ editor-in-chief (now editor-at-large) Gerry Baker.

Given that Friday’s surprisingly robust (at least on the surface) GDP print has revived speculation among some economists about ‘divergence’ between the US and the global economy, Baker led with a question about whether Q1 GDP had impacted the view on US growth over at the IMF.

Lagarde

While the surprisingly large number will “certainly lead us to reassess our forecast for growth in the US,” which could in turn boost the global economy, Lagarde cautioned that one strong GDP print doesn’t make a trend, and that the global economy remains mired in what she called a “delicate moment.”

Earlier this month, the IMF again slashed its forecasts for global growth, this time to its weakest level in a decade.

Asked if we’re seeing more divergence now.

“We still think that it’s a delicate moment given the still synchronized slowdown for growth…you have about 70% of the global economy which is slowing – but still growing – and we are not expecting a recession and certainly not in our baseline. Everybody including the highest authorities were certainly surprised by the large number in the United States…that will certainly lead us to reassess our forecast for growth for the United States, and clearly given the size of the US economy it will have an impact overall.”

Looking ahead, the upcoming reading on US productivity will be important.

 …click on the above link to read the rest of the article…

Globalists Detail Short and Long Term Guidance for Further Centralisation of Powers

Globalists Detail Short and Long Term Guidance for Further Centralisation of Powers

During this month’s Spring Meetings in Washington DC, the IMF and World Bank held their annual Development Committee conference which looked at the economic outlook and potential risks for the global economy.

As is tradition, IMF head Christine Lagarde produced a written statement outlining several areas of priority. All of them were predicated on ‘reaching the 2030 Sustainable Development Goals‘. Whilst on paper the statement is geared towards emerging and developing countries, elements of it relate notably to western nations such as the United Kingdom, despite Britain being considered an advanced economy.

To explain, let’s first examine the stance taken on monetary policy:

In countries with elevated inflation or where exchange rate depreciations could trigger inflation pass-through, central banks should focus on containing inflation expectations (Angola, Argentina, Iran, Turkey). By contrast, monetary policy can be more accommodative where expectations are well anchored (Brazil, Indonesia).

In October 2018, a communique from the thirty-eighth meeting of the International Monetary and Financial Committee stated that where inflation was ‘close to or above target‘, central banks should tighten policy. On the opposite end of the scale, banks should ‘maintain monetary accommodation where inflation is below target‘.

As we have already seen since the 2016 EU referendum, the sustained fall in the value of sterling was according to the Bank of England ‘entirely‘ responsible for a subsequent spike in inflation. Doing what very few thought they would, the BOE raised interest rates in response – the first rise in over ten years. They then followed up with a second hike nine months later, with inflation remaining above the central bank’s mandate of 2%. …click on the above link to read the rest of the article…


Decades of laissez-faire in Europe or the destruction of the middle class

Decades of laissez-faire in Europe or the destruction of the middle class 

The EU elites pay homage to the laissez-faire of liberalism. They have been deregulating and “liberating” the market for 30 years. The Western governments also follow the philosophy and hardly intervene in the market. There is only one authority that can intervene effectively in the EU: the ECB. Globalisation since the 1980s, as well as the liberation of trade and human traffic, has enabled a violent increase in world GDP and the enrichment of corporations. For emerging economies such as India or China, this was an opportunity to get out of poverty. The liberals, however, who had a global village and human happiness on their banner, were basically interested in opening up the large Asian markets for their products. The tools of these elites, the World Trade Organization and the IMF, ensured that the middle class grew in emerging countries and thus the sales markets for European corporations. Their bosses would probably say: it is a pity that India and China are not allowed to join the EU.

Awesome! In any case, the West monetized Asia’s cheap labour in this way. At the same time, the middle class in China, India, South Korea and other tigers grew, but at the expense of the European workforce and middle class, which were virtually cut off from liberal profits. While corporate profits, and hence GDPs, skyrocketed, real wages did not rise and wealth was concentrated among elites and their lobbyists. This process was accelerated by the reforms of the 2000s: in Germany at that time the reforms of the left-liberal coalitions were supposed to create more jobs for people through unusual forms of employment (mini-jobs, temporary work, fixed-term contracts, etc.), which led to the fact that even today there are more and more people with low incomes in abnormal working conditions. “The middle class has shrunk from 48 per cent in the period 1995-99 to 41 per cent in 2014-15.1)

 …click on the above link to read the rest of the article…

IMF Hands $4.2 billion in loans for Ecuador for Julian Assange

IMF Hands $4.2 billion in loans for Ecuador for Julian Assange 

The evidence of political pressure on Ecuador is surfacing. The IMF Executive Board Approved US$4.2 Billion  (435% of quota and SDR 3.035 billion) Extended Fund Facility for Ecuador. The Executive Board agreed to this arrangement with strings attached. The Board’s decision enables the immediate disbursement of US$652 million (equivalent to SDR 469,7 million, or 67.3 percent of Ecuador’s quota). This arrangement provides support for the Ecuadorean government’s economic policies over the next three years provided they gave up Julian Assange.

It is very interesting how corruption and bribes grease the world. Every person who ever becomes a whistleblower on government goes to prison.

The USA immediately unveiled its request for extradition on computer hacking charges that carry 5 years. Of course, the US must put on its case to get its hands around Julian’s neck. Once he is extradited to the USA, they will unleash a battery of other charges to ensure he does life.

The rumblings behind the curtain are that the Democrats in league with the Deep State are behind this, hoping to force Assange to say he got Hillary’s emails from Putin as part of a plea deal. The danger of all of this nonsense is simply the plain fact it will bring us one more step closer to world war. What is clearly involved here seems to be a highly coordinated scheme that links the IMF and throwing Chelsea Manning in prison who will conveniently have to testify against Assange who can be eventually charged as was Manning and face the death penalty. By linking this to Russia, they hope to also prevent Trump from granting him any pardons.

This is getting very deep. Tyranny under the Banner of Liberty & Human Rights.

Time for a True Global Currency

ocampo33_Alicia Llop_getty images_coins

Time for a True Global Currency

The International Monetary Fund’s global reserve asset, the Special Drawing Right, is one of the most underused instruments of multilateral cooperation. Turning it into a true global currency would yield several benefits for the global economy and the international monetary system.

NEW YORK – This year, the world commemorates the anniversaries of two key events in the development of the global monetary system. The first is the creation of the International Monetary Fund at the Bretton Woods conference 75 years ago. The second is the advent, 50 years ago, of the Special Drawing Right (SDR), the IMF’s global reserve asset.

When it introduced the SDR, the Fund hoped to make it “the principal reserve asset in the international monetary system.” This remains an unfulfilled ambition; indeed, the SDR is one of the most underused instruments of international cooperation. Nonetheless, better late than never: turning the SDR into a true global currency would yield several benefits for the world’s economy and monetary system.

The idea of a global currency is not new. Prior to the Bretton Woods negotiations, John Maynard Keynes suggested the “bancor” as the unit of account of his proposed International Clearing Union. In the 1960s, under the leadership of the Belgian-American economist Robert Triffin, other proposals emerged to address the growing problems created by the dual dollar-gold system that had been established at Bretton Woods. The system finally collapsed in 1971. As a result of those discussions, the IMF approved the SDR in 1967, and included it in its Articles of Agreement two years later. 

Although the IMF’s issuance of SDRs resembles the creation of national money by central banks, the SDR fulfills only some of the functions of money. True, SDRs are a reserve asset, and thus a store of value. They are also the IMF’s unit of account.

 …click on the above link to read the rest of the article…

BIS General Manager Outlines Vision for Central Bank Digital Currencies

BIS General Manager Outlines Vision for Central Bank Digital Currencies

The behaviour of central bankers is rarely (if ever) given sustained coverage in the national press. Outside of prominent economic channels, developments from within institutions such as the International Monetary Fund and the Bank for International Settlements are seldom remarked upon. Instead, attention is restricted to the latest round of political theatrics which serve to disguise the actions and intentions of globalist planners.

As the furore of Brexit gained in intensity last month, BIS General Manager Agustin Carstens gave a speech at the Central Bank of Ireland 2019 Whitaker Lecture. Under the heading, ‘The future of money and payments‘, Carstens mapped out what has been a long standing vision of globalists – namely, to acquire full spectrum control of the international financial system through the gradual abolition of what Bank of England governor Mark Carney has called ‘tangible assets‘ i.e. physical money.

The ‘future of money‘ narrative is one that both the BIS and the IMF have been actively promoting since the advent of Brexit and Donald Trump’s presidency. Here are some links to speeches made by both Christine Lagarde and Agustin Carstens:

Central Banking and Fintech—A Brave New World?

Winds of Change: The Case for New Digital Currency

Money and payment systems in the digital age

Money in the digital age: what role for central banks?

Central to the vision for a fully digitised global economy is the intent to reform national payment systems. The UK uses the Real-time gross settlement (RTGS) system, which the majority of payments in Britain are facilitated through. The Bank of England’s Victoria Cleland has emphasised on numerous occasions that the ‘fundamental renewal‘ of the system is being carried out through choice rather than necessity. This would indicate that RTGS works fine in its current manifestation, but the BOE (along with the European Central Bank) have been tasked with assuming more control over their respective payment systems.

 …click on the above link to read the rest of the article…

Olduvai IV: Courage
In progress...

Olduvai II: Exodus
Click on image to purchase