Home » Posts tagged 'imf'

Tag Archives: imf

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Has the IMF become a Fascist Organization?

The entire world of economics has been abandoned without actually admitting it has failed. Even the International Monetary Fund (IMF) is throwing in the towel without actually admitting its policies have totally failed. The IMF was the bastion of Keynesianism, supporting economic Neoliberalism. Of course, the head of the IMF is on the board of the World Economic Forum and is fully onboard with Schwab’s Great Reset. Previously, if you asked if the IMF was a Neoliberal-Keynesian it would have been like asking if the Pope if he was a Catholic.

The complete reversal of the IMF has been at the direction of the World Economic Forum who endorses really a one-world government and economic dictatorship. The old Neoliberalism ideology of free markets, free trade, and small government, are gone. This is part of Schwab’s attempt to control the Fourth Industrial Revolution, yet when we have the ONLY fully functional AI system in the world that writes over 1,000 reports on the state of the financial world, they wanted to shut it down because it also forecasts that they will fail. The current and previous head of the IMF has been a board member of Schwab’s WEF. There is no more independence. The IMF is fully occupied by Schwab.

 

The IMF has been pushing Schwab’s digital agenda for several years once Christine Legard got a hold of the IMF. What makes this reversal in economic policy so shocking is that the IMF even put out a piece entitled: “Neoliberalism: Oversold?” They are now questioning the entire world of free trade and are advocating more of a fascist state with control by a central authority.

The Markets in Light of the Chaos

When we look around the world the final say in every election is always the vote of capital – which is international rather than confined to local politics. Biden has already shut down the pipeline from Alberta which will only be symbolic for whatever substitute will mere be brought in by ship and pumped into another pipeline. But politics is never about reality – it is only concerned about appearance.

When we look around the world, we must do so through the eyes of the FX markets for only then will we begin to see the real trends. The German DAX has made a new high in euros, but not in the main global currencies. In both dollars and Japanese yen, the DAX has not yet come close to making new highs.

 

Then we have the confusing trend in gold. So many have been asking for a Gold Report ASAP because nothing has made sense after all of these years touting gold is a hedge against inflation and the dollar will collapse. There is even the most bizarre analysis claiming that just a few months before Covid appeared, the Fed was busy pouring boat-loads of dollars into the US banks into the inter-lending market known as REPO to prevent bank-runs which were starting to develop. They claimed these were the same “tectonic fissures that developed prior to the 2008 crisis” when banks became so distrustful of each other’s solvency. They concluded: “If unsuppressed the lending rates would continue to rise, laying a path to bank failures and a contagion which would eventually derail the economy and undermine the dollar itself.”

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

‘Spend as much as you can,’ IMF head urges governments worldwide

MOSCOW (Reuters) – Policymakers worldwide should embrace more spending to help revive their stuttering economies, the head of the International Monetary Fund said on Friday at Russia’s annual Gaidar economic forum.

Managing Director Kristalina Georgieva did not give any specific economic forecasts, but made clear her desire for governments to up their spending and that a synchronised approach internationally was best for growth.

In 2020, the IMF provided support to 83 countries, she said.

“In terms of policies for right now, very unusual for the IMF, starting in March I would go out and I would say: ‘please spend’. Spend as much as you can and then spend a little bit more,” Georgieva said.

“I continue to advocate for monetary policy accommodation and fiscal policies that protect the economy from collapse at a time when we are on purpose restricting both production and consumption,” she said.

Georgieva praised Russia’s synchronised response to the economic challenges created by the COVID-19 pandemic, mentioning both the central bank’s monetary easing and fiscal stimulus from the finance ministry.

She also called for more international cooperation, as has been seen in the race for a COVID-19 vaccine, on the push for digital and green growth.

“IMF staff calculated that a coordinated G20 fiscal stimulus in green infrastructure, if it is done in a coordinated manner, would deliver two-thirds more in growth … than if each country acts on its own,” she said.

Dear Governments, Spend as Much as You Can

Dear Governments, Spend as Much as You Can

This week we heard further details about more trillions in upcoming spending and even changing monetary issuance laws (for CBDCs) worldwide.

The International Monetary Fund (IMF), what critics might call a supranational leveraged buyout bank, was out this week making calls for governments worldwide to spend as much as they can.

The IMF also noted that monetary issuance laws would need to be changed in 104 nations to directly issue fiat Central Bank Digital Currency or CBDC for fuller global fruition.

Sounder money advocates yet to banned off of Twitter are predicably pissed off.

Global Government Bonds

SDBullion Market Update

Federal Reserve Chairman Jerome Powell had the following statement this week worth highlighting in our market update video.

Federal Reserve Chairman Jerome Powell had the following statement this week worth highlighting in our market update video.

There is nothing in any definition about how fiscal dominance, which considers our still having the dominant fiat currency of the world, utilizes yield curve control, with suppressed real interest rate yield, rigging inflation and unemployment data, while still dominating the world in most price discovery powers. 

Yet on the cusp of losing economic output dominance to over 2.5 billion Chinese and Indian residents, they tend to stack physical gold and silver as they get wealthier increasingly.

Another week of up then down spot price action for silver and gold. As we head into this Monday’s thinly traded Martin Luther King holiday, note that the spot gold price sits just below its 200-day moving average.

During gold bull markets outside of the global financial crisis, that is typically an excellent time to add to bullish and betting long positions.

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

Uprising Against BigTech?

Many are calling it the time to revolt against BigTech. Instead of using Google for searching, which is tracking everything you do, perhaps switch to DuckDuckGo. I would NOT post any personal information on Facebook. Just look at the agenda of the IMF — they will look at everything in the future which is why BigTech is conspiring against the people and the government. While they ban Parlar, when they are banned, then it is illegal.

 

The IMF Chief Economist Sees a Threat to World Economies From a Liquidity Trap

In the Financial Times from November 2 2020, the IMF chief economist Gita Gopinath suggested that world economies at present are likely to be in a global liquidity trap. Gopinath has reached this conclusion because the yearly growth rate of the price indexes has been trending down despite very low interest rates policies. According to the IMF chief economist, central banks have lowered interest rates to below 1 percent and in some countries interest rates are at present negative. In the framework of a liquidity trap, it is held that the ability of central banks to stage an effective defense against various economic shocks weakens significantly. So how then can one resolve the problem of the central banks inability to produce the necessary defense of the economy?

A possible way out of the liquidity trap suggests Gopinath, is to employ aggressive loose fiscal policy. This means an aggressive government spending in order to boost the aggregate demand.

According to Gopinath,

Fiscal authorities can actively support demand through cash transfers to support consumption and large-scale investment in medical facilities, digital infrastructure and environment protection. These expenditures create jobs, stimulate private investment and lay the foundation for a stronger and greener recovery. Governments should look for high-quality projects, while strengthening public investment management to ensure that projects are competitively selected and resources are not lost to inefficiencies.

Furthermore, according to Gopinath,

The importance of fiscal stimulus has probably never been greater because the spending multiplier — the pay-off in economic growth from an increase in public investment — is much larger in a prolonged liquidity trap. For the many countries that find themselves at the effective lower bound of interest rates, fiscal stimulus is not just economically sound policy but also the fiscally responsible thing to do.

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

Belarusian President Claims IMF & World Bank Offered him a Bribe to Impose COVID Restrictions

Belarusian President Aleksandr Lukashenko said last month via Belarusian Telegraph Agency, BelTA., that World Bank and IMF offered him a bribe of $940 million USD in the form of “Covid Relief Aid.” In exchange for $940 million USD, the World Bank and IMF demanded that the President of Belarus:

• imposed “extreme lockdown on his people”
• force them to wear face masks
• impose very strict curfews
• impose a police state
• crash the economy

Belarus President Aleksandr Lukashenko REFUSED the offer and stated that he could not accept such an offer and would put his people above the needs of the IMF and World Bank. This is NOT a conspiracy. You may research this yourself. He actually said this!

Now IMF and World Bank are bailing out failing airlines with billions of dollars, and in exchange, they are FORCING airline CEOs to implement VERY STRICT POLICIES such as FORCED face masks covers on EVERYONE, including SMALL CHILDREN, whose health will suffer as a result of these policies.

And if it is true for Belarus, then it is true for the rest of the world! The IMF and World Bank want to crash every major economy with the intent of buying over every nation’s infrastructure at cents on the dollar!

The World Is Drowning In Debt

The World Is Drowning In Debt

According to the IMF, global fiscal support in response to the crisis will be more than 9 trillion US dollars, approximately 12% of world GDP. This premature, clearly rushed, probably excessive, and often misguided chain of so-called stimulus plans will distort public finances in a way in which we have not seen since World War II. The enormous increase in public spending and the fall in output will lead to a global government debt figure close to 105% of GDP.

If we add government and private debt, we are talking about 200 trillion US dollars of debt, a global increase of over 35% of GDP, well above the 20% seen after the 2008 crisis, and all in a single year.

This brutal increase in indebtedness is not going to prevent economies from falling rapidly. The main problem of this global stimulus chain is that it is entirely oriented to support bloated government spending, and artificially low bond yields. That is the reason why such a massive global monetary and fiscal response is not doing much to prevent the collapse in jobs, investment, and growth. Most businesses, small ones with no debt and no assets, are being wiped out.

Most of this new debt has been created to sustain a level of public spending that was designed for a cyclical boom, not a crisis and to help large companies that were already in trouble in 2018 and 2019, the so-called ‘zombie’ companies.

According to Bank Of International Settlements, the percentage of zombie companies – those that cannot cover their debt interest payments with operating profits – has exploded in the period of giant stimuli and negative real rates, and the figure will skyrocket again.

That is why all this new debt is not going to boost the recovery, it will likely prolong the recession.

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

Mexico State Oil Company Files $22 Billion Debt Swap amid IMF Threats and White House Visit

Mexico Economy Feature Photo

THE “NEW NAFTA”

Mexico State Oil Company Files $22 Billion Debt Swap amid IMF Threats and White House Visit

Mexico’s economy is put in the crosshairs by the IMF as the “new NAFTA” takes effect and AMLO is forced to make concessions to avoid an even deeper recession.

Mexico’s president, Andres Manuel Lopez Obrador, known colloquially as AMLO, arrived back in his nation’s capital yesterday aboard an American Airlines flight after his first state visit to the United States since taking office in a historic, landslide victory in 2018. The commercial flight included a stopover at Miami International Airport as coronavirus-induced protocols have resulted in the suspension of direct flights in and out of the North American country.

AMLO’s choice of traveling commercial instead of flying on the official presidential airplane is part of a carefully-crafted everyman image he has been cultivating for years since he left the ranks of the once immovable conservative ruling party, the PRI, and joined the left-leaning PRD in the late 1980s. In 2014, Obrador formed a new party called MORENA after having served as Mexico City’s mayor for four years and later losing his first bid to become president in 2006.

The Trump White House hosted AMLO on Wednesday, one day after Pemex – the embattled Mexican state-owned petroleum company – announced a $22.4 billion debt swap to mitigate its massive financial liabilities. The swap will be the largest of the recent refinancing operations carried out by the once state-owned company; and while the filing with the U.S. SEC did not specify when the bonds would be issued, the action was intended to alleviate pressure mounting on the oil giant, which Obrador had planned to use as a “pillar” in his strategy to turn the Mexican economy around. Falling oil prices, however, have severely hampered the execution of that idea.

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

Recovery or Renewal? Time for an economic rethink

Recovery or Renewal? Time for an economic rethink

A recent study of long-term fluctuations in economic growth published in Nature Scientific Reports suggests both danger and opportunity in the emerging debate about post Covid-19 economic recovery. In this blog, Craig D. Rye and Tim Jackson outline their findings.

© matejmo/iStock

The International Monetary Fund (IMF) expects the global economy to contract by 5% this year alone, making it the largest downturn since the Great Depression in the 1930s. Advanced economies are likely to see a 10% decline in output and even the emerging economies of south-east Asia are unlikely to escape a recession.

Unprecedented though this is in the modern era, its real impact lies in the wider tapestry within which this uncomfortable economic portrait is drawn. Rates of economic growth across the OECD have been in decline since the 1970s, a phenomenon known as ‘secular stagnation’. The average growth in GDP per capita across the rich economies fell from over 4% in the mid-1960s to little more than 1% in the pre-pandemic years. The decline is related to an underlying stagnation in labour productivity growth.

In a recent study, published in Nature Scientific Reports, we’ve been exploring an even longer story about the ups and downs of economic growth and recession. Critical Slowing Down (CSD) theory is most commonly used to understand the oscillations (waves) in physical systems. In our study, we used the same techniques to analyse long-term trends in the gross domestic product (GDP) in datasets from as far back as the 1820s.

Imagine a pendulum or swing which is held in its equilibrium position by gravity. A push or a shove in one direction or another will shift the pendulum away from the central position or a random gust of wind might move the swing, but gravity pulls it back again.

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

“Worst. Recession. Ever.”

“Worst. Recession. Ever.”

When Harry Met Comic-Book-Guy

Worst global downturn since the Great Depression” says the IMF. Actually, it’s potentially worse than that.We are seeing credible (initial) claims in the UK and US that millions/tens of millions are going to be unemployed – again taking us back to black & white memories of long queues of the jobless holding signs saying “Will Work For Food.”

We are also seeing calls for GDP to collapse by up to a third in the presumed Q2 trough in the UK and the US, as just two examples, which in the space of months would already take us to the kind of depths plunged back in the 1930s (and actually this will be the worst recession since the 18th century according to one UK report.) Moreover, in a world far more economically-integrated today than it was in the 1930s, what happens in the (smaller) West will rapidly hit the (larger) rest.

As will the virus itself, of course. What is to stop it rampaging through Africa and South Asia, as just two examples? “Heat!” we have been told. Yet besides the fact that Covid-19 is transmitting in Indonesia and Singapore we see a report today that French scientists have found some strains of the virus can survive long exposures to temperatures of up to 60c, and it takes almost boiling point to kill it. Another (non-peer reviewed) study from Australian and Taiwanese researchers based on samples from India has shown Covid-19 is already mutating, shifting its mechanism used to bind to human cells – the paper concludes “This means current vaccine development…is at great risk of becoming futile.” Moreover, a Chinese scientist is warning of a serious risk of a second global wave of Covid in November – exactly the pattern seen in the 1918-19 Spanish Flu.

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

Calls For Global Debt Jubilee Grow Louder As ‘Anything Goes’ Policy Mania Takes Over

Calls For Global Debt Jubilee Grow Louder As ‘Anything Goes’ Policy Mania Takes Over

About 140 global organizations and charities are calling for a worldwide Debt Jubilee to avoid some of the world’s poorest countries from collapsing into chaos amid the COVID-19 crisis, reported BBC News

The British-based Jubilee Debt Campaign is leading the movement ahead of the G20 meeting this week.

“Developing countries are being hit by an unprecedented economic shock, and at the same time face an urgent health emergency,” said Sarah-Jayne Clifton, director of the Jubilee Debt Campaign.

“The suspension on debt payments called for by the IMF and World Bank saves money now, but kicks the can down the road and avoids actually dealing with the problem of spiraling debts.

Clifton is urging for the immediate cancellation of 69 of the world’s poorest countries’ debt payments this year, which would free up at least $25 billion for the countries in 2020, and up to $50 billion if the jubilee was extended to the end of 2021.

“This is the fastest way to keep money in countries to use in responding to Covid-19, and to ensure public money is not wasted bailing out the profits of rich private speculators,” added Clifton.

The latest call for a Debt Jubilee should come as no surprise to ZeroHedge readers.

Over the last several decades, governments across the world have added insurmountable debts, leadingBill Buckler via The Privateer to say back in 2012 that the world has dived down a deep hole and into a trap that has “ensnared Japan more than two decades ago.”

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

IMF Prepares $1 Trillion Bazooka

IMF Prepares $1 Trillion Bazooka

The IMF has just fired off a trillion-dollar “bazooka” of its own Monday morning.

In a blog post published minutes ago, IMF Director Kristalina Georgieva issued three “policy prescriptions” that she said should define a “coordinated response” from the developed economies in Europe and the US. In addition to declaring that the IMF has $1 trillion in loan capacity ready to put to work to salve the economic damage caused by the outbreak, Georgieva encouraged governments to spend more, and asked the Fed to consider bulking up its dollar FX swap lines to emerging-market central banks. She also noted that the $42 billion that investors have pulled from EM markets is one of the biggest outflows in history, and will certainly ratchet up financial stressors.

Read the full post below:

*  *  *

Today, the IMF published a set of policy recommendations that can help guide countries in the difficult days ahead.

What more needs to be done?

Three action areas for the global economy:

First, fiscal. 

Additional fiscal stimulus will be necessary to prevent long-lasting economic damage.
Fiscal measures already announced are being deployed on a range of policies that immediately prioritize health spending and those in need. We know that comprehensive containment measures—combined with early monitoring—will slow the rate of infection and the spread of the virus.

Governments should continue and expand these efforts to reach the most-affected people and businesses—with policies including increased paid sick leave and targeted tax relief.

Beyond these positive individual country actions, as the virus spreads, the case for a coordinated and synchronized global fiscal stimulus is becoming stronger by the hour.

During the Global Financial Crisis (GFC), for example, fiscal stimulus by the G20 amounted to about 2 percent of GDP, or over $900 billion in today’s money, in 2009 alone. So, there is a lot more work to do.

Second, monetary policy. 

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

Are the World Elite Using a Rise in Nationalism to Reassert Globalisation?

Are the World Elite Using a Rise in Nationalism to Reassert Globalisation?

Putting yourself in the mind of someone who commits an act of illegality is perhaps the only way we can begin to understand the motivation behind the transgression. A common reflex reaction to the most heinous of crimes is to simply call for the perpetrator to be removed from society and put in prison. Out of sight, out of mind. Whilst this is not an unreasonable expectation, it does not get to the root of why he or she became a criminal.

We can take a similar stance when it comes to globalism. If a self appointed elite who permeate institutions like the Bank for International Settlements and the IMF share a desire to concentrate world power through a centralised network of global governance, rather than simply rebel against this vision is it not equally as important to try and understand the vision from the perspective of those who created it? I would argue that to comprehend the minds of global planners it is necessary to mentally place yourself into their way of thinking.

A couple of years ago I published an article called, Order Out of Chaos: A Look at the Trilateral Commission, where I examined some of the key motivations behind this particular institution’s goals. I quoted past members of the Commission openly rejecting national sovereignty and championing the interdependence of nations. One of those quotes was from Sadako Ogata, a former member of the Trilateral Commission’s Executive Committee, who at an event to mark 25 years of the institution remarked how ‘international interdependence requires new and more intensive forms of international cooperation to counteract economic and political nationalism‘.

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

IMF Slashes Global GDP Forecast For 6th Consecutive Time, Warns “Climate Change” Will Hit Economy

IMF Slashes Global GDP Forecast For 6th Consecutive Time, Warns “Climate Change” Will Hit Economy

After the IMF cut its global economic outlook for 2019 to 2.9% in October, the lowest since the financial crisis, and warned that global trade growth would be “close to a standstill”, moments ago the IMF once again downgraded its forecast for global GDP for 2020 and 2021, its sixth straight reduction, although in a sliver of optimism, global GDP in 2020 is now expected to post a modest rebound from 2.9% to 3.3%, (down from 3.4% in October) and to 3.4% in 2021 (down from 3.6%) as the IMF says “there are now tentative signs that global growth may be stabilizing, though at subdued levels.”

According to the IMF, the downward revision primarily reflects negative surprises to economic activity in a few emerging market economies, most notably India, where 2020 GDP is now expected to rise just 5.8% down from 7.0%, which means that in 2020 China will regain the title of the world’s fastest growing economy. In a few cases, this reassessment also reflects the impact of increased social unrest.

Emerging market debacle aside, the IMF said that on the positive side, market sentiment “has been boosted by tentative signs that manufacturing activity and global trade are bottoming out, a broad-based shift toward accommodative monetary policy, intermittent favorable news on US-China trade negotiations, and diminished fears of a no-deal Brexit, leading to some retreat from the risk-off environment that had set in at the time of the October WEO.”

However, and this will be of particular interest to traders, even the IMF admitted that “few signs of turning points are yet visible in global macroeconomic data.”

And so, in addition to the collapse in India, the IMF also sees continued slowdown in the US and Europe in 2020, both of which were cut by 0.1% to 2.0% and 1.3%, while China saw a modest increase by 0.2% to 6.0%, which however drops to 5.8% in 2021.

…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