IMF out of cash and a scam by the banks?
Discussion
http://www.ukcolumn.org/2009/01/30/hustle/
Where are we headed folks?
Snip from article:
The IMF has a lending capacity of about $250 billion, and wants to double that. In the past the UK and the USA have vetoed the IMF issuing bonds to raise money. I doubt such a veto will come from the UK this time, since we are so bankrupt we may just need IMF cash in the not too distant future.
The $250 billion figure seems strangely low to me, considering it is usually the IMF that countries run to when they can’t pay their debts.
But it raises an interesting question - if the IMF extends loans to nation states using money it has borrowed from banks, and nation states are using those loans to bail out banks, where is the interest on the loans going?
This could just be the biggest scam in history - banks use the fractional reserve system to issue loans, creating money out of thin air. This previously non-existent money is lent to nation states to fund their bailout packages, where the cash is forwarded back to the banks again to support their balance sheets. In return the banks give the countries involved some worthless “assets.” The tax payer is now liable to the banks for the interest on loans which the banks effectively lent themselves.
Where are we headed folks?
Snip from article:
The IMF has a lending capacity of about $250 billion, and wants to double that. In the past the UK and the USA have vetoed the IMF issuing bonds to raise money. I doubt such a veto will come from the UK this time, since we are so bankrupt we may just need IMF cash in the not too distant future.
The $250 billion figure seems strangely low to me, considering it is usually the IMF that countries run to when they can’t pay their debts.
But it raises an interesting question - if the IMF extends loans to nation states using money it has borrowed from banks, and nation states are using those loans to bail out banks, where is the interest on the loans going?
This could just be the biggest scam in history - banks use the fractional reserve system to issue loans, creating money out of thin air. This previously non-existent money is lent to nation states to fund their bailout packages, where the cash is forwarded back to the banks again to support their balance sheets. In return the banks give the countries involved some worthless “assets.” The tax payer is now liable to the banks for the interest on loans which the banks effectively lent themselves.
Edited by Tafia on Saturday 14th March 10:57
Scrap money. It's a "manufactured" form of payment for goods/services anyway !
Back to bartering I say..or horse/dog/wife trading. Trade horses & pikeys will rule the world (Oh bugger) but we can all ride off into the sunset & forget this monster cock up of the financial system ever happened.
Back to bartering I say..or horse/dog/wife trading. Trade horses & pikeys will rule the world (Oh bugger) but we can all ride off into the sunset & forget this monster cock up of the financial system ever happened.
ries are screwed and borrowing from the IMF, right?
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