IMF and QE on a grander scale than you thought possible...

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Dazed's picture
Dazed
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Joined: Sep 3 2009
Posts: 1
IMF and QE on a grander scale than you thought possible...

The IMF is issuing 250,000,000,000 USD's worth of SDR's (we will need a new alphabet soon with all these acronyms).

http://www.imf.org/external/pubs/ft/survey.../POL082809A.htm

Now, you might ask, where did the IMF get its hands on 250 Billion Dollars worth of SDR's? Well, you've guessed it, they printed them at the stroke of a key. Wish I had a keyboard like that 2 5 0 0 0 0 0 0 0 0 0 0 <ENTER> WOW! Hey presto! Another huge chunk of banker created money hits the economy.

And where did they all go to, you might ask, well, the are dished out free of charge and even interest free unless SDRs are sold/bought over/above their allotment, (jeeze, you have to give it to the IMF, they are really generous with this stuff) to a whole bunch of countries according to their quota.

http://www.imf.org/external/np/sec/memdir/members.htm

Note that the US takes by far the lions share, a whopping 17%, so Geithner has a windfall of 35 Billion Dollars.

So what exactly is an SDR?

Well "It is not a currency, nor a claim on the IMF, but is potentially a claim on freely usable currencies of IMF members"

http://www.imf.org/external/np/exr/faq/sdrallocfaqs.htm

So where does the IMF stand on funding?

This year they are creating 280 Billion Dollars of SDR's bringing the total up to 318,000,000,000 of USD equivalent SDR's.

The is an unprecedented ramping up of the operation of the IMF, and possibly deserves some keen analysis to find out exactly what is going on. With "normal" currencies there is an element of solidness   because the respective governments can tax the sheeple in that currency. But I don't quite understand why the IMF, since it can simply shunt out shed loads of SDR's,

1. needs to make borrowing agreements with the UK, NorwayJapan and Canada.

2. why the SDR indeed has any value whatsoever. The issuing of this great chunk of "money" has simply debased everybody else currencies and, through this process, transferred to the SDR that same amount of lost value.

3. I hope that China, by being the first country to actually "buy" into this for 50,000,000,000 USD, instead of just being given the SDR, is not being taken for a ride. This is a fairly big commitment, basically giving the IMF 50 Billion in return for well, not much really. What happens when the IMF dishes out this cash to bail out say the UK, and then China wants a few USDs back in exchange for it's SDR's? 

Oh! DONG! Forget that last sentence. It has just struck me, the Chinese can exchange the SDR's for USD's, GBP's JPY's and EUR's indeed, possibly any other currency, provided, of course, that all the G20 Central Bankers agree to hold up the system. So what, in effect has taken place? Surely it means that the IMF has just created another wad of SDR's out thin air and received a bunch of Chinese owned greenbacks in exchange and through this further debasing the value of every other currency by that very same 50 Billion USDs. Looks very much like Quantitative Easing at the World level.

This all looks suspiciously like a New World Currency is being born before our eyes, or rather, behind our backs. And who is in charge? Yes, is those Masters of Disaster, the Central Bankers. And who do they have to answer to? I guess nobody at the World level.

Is this all under control?

mobius's picture
mobius
Status: Silver Member (Offline)
Joined: May 18 2009
Posts: 160
Re: IMF and QE on a grander scale than you thought ...

Thanks for that one, Dazed.  I think this is B I G    S T U F F here and I believe that we (the inhabitants of this earth) will be feeling the ramifications of this action for decades to come.  Good grief. 

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: IMF and QE on a grander scale than you thought ...

Dazed,

I think your take is correct in saying that this "all looks suspiciously like a New World Currency is being born before our eyes, or rather, behind our backs. And who is in charge?"  The "western" central banks are consolidating their "money making monopoly" so that it is out of reach for sovereign nations to question or advise the policy makers.  The money power has taken over individual nations, now they will merge us into a global form of government controlled by them.

Countries like the U.S. must decide if they want to be ruled by the money aristocracy or to take a stand by issuing and controlling their own money.  This is the same choice confronted by our founding fathers when they broke away from the Bank of England.  Will we take back our greatest power or will simply stand by while our financial freedom is given away?

Larry

Cloudfire's picture
Cloudfire
Status: Diamond Member (Offline)
Joined: Sep 29 2008
Posts: 1813
Re: IMF and QE on a grander scale than you thought ...

Hmmm . . . . Now do we understand why TPTB are behaving in a manner that will likely destroy the USD?  Now do we understand why people who challenge the legality and propriety of the Fed's existance aren't disappearing literally, or at least professionally and culturally?

 

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