Monday, March 16, 2009
IMF poised to print billions of dollars in 'global quantitative easing'
Note: All the more reason to BUY GOLD/SILVER for the coming hyperinflation!
The International Monetary Fund is poised to embark on what analysts have described as "global quantitative easing" by printing billions of dollars worth of a global "super-currency" in an unprecedented new effort to address the economic crisis.
By Edmund Conway
Last Updated: 9:07AM GMT 16 Mar 2009
Alistair Darling and senior figures in the US Treasury have been encouraging the Fund to issue hundreds of billions of dollars worth of so-called Special Drawing Rights in the coming months as part of its campaign to prevent the recession from turning into a global depression.
Should the move, which is up for discussion by the summit of G20 finance ministers this weekend, be adopted, it will represent a global equivalent of the Bank of England's plan to pump extra cash into the UK economy.
World now in grip of 'Great Recession' warns IMF
However, economists warned that the scheme could cause a major swell of inflation around the world as the newly-created money filters through the system. The idea has been suggested by a number of key figures, including billionaire investor George Soros and US Treasury adviser Ted Truman.
Simon Johnson, former chief economist at the IMF, said: "The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them.
"The objective is to create a windfall of cash. However if everybody goes out and spends the money it could be very inflationary."
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The next time the IMF issues cash and not credit/debt will be the first time. They seem to be phrasing this as giving everyone a cheque.
ReplyDeleteThat is a poorly written article. I think it's from the UK Times.
ReplyDeleteLet's break it down:
"senior figures in the US Treasury have been encouraging the Fund to issue hundreds of billions of dollars worth of so-called Special Drawing Rights"
Here's a brand new term: Special Drawing Rights.
Can I get a definition, perhaps in legalese so that the threat to American sovereignty is made apparent.
Let's dig in a bit more. Look at this quote:
"... by printing billions of dollars ..."
The IMF is going to increase the M3? And how would that work? Will the IMF be buying Treasuries -- thus further inflating the bubble in Treasuries?
Soros is behind it.
Moving on. Analyze this quote:
"The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them."
Who is "everyone" and how would they "get" "bonus dollars"?
Finally, let's unwind the next bit of text:
"The objective is to create a windfall of cash. However if everybody goes out and spends the money it could be very inflationary."
The value of anything is guaged by its perceived scarcity. A "windfall" of Federal Reserve Notes created as needed in an uncoordinated manner by numerous "banking" entities would, in my opinion, dramatically reduce the value of the Federal Reserve Note (FRN). It would allow foreign banking institutions and investors to MONETIZE their bad bets in Federal Reserve Notes. It would expand the bad bet money laundering role of the Fed to the IMF.
Ultimately, the FRN would become a pawn to be sacrificed strategically and in a timely manner. After the first round of bad bet laundering, expect FRN-dumping to begin in earnest.
If allowed to go forward, empowering the IMF to delegate FRN-creation to international banking entites would represent a coup, a major coup.
For those opposed to the Fed, it represents the spawning of the hydra already running rampant.