Archive for the ‘#IMF’ Tag

Lagarde, New I.M.F. Chief, Rocks the Boat – NYTimes.com   Leave a comment

Worse, as far as the men seated in the room were concerned, Ms. Lagarde was partly responsible for the collapse of confidence bedeviling the financial markets. She had dared to state what few of them would admit publicly: European banks were not as sheltered from this storm as they might seem.

Ms. Lagarde has backed off in the past. But this time, she did not climb down from her principal point: That many banks still need a bigger cushion against potential losses in the event of a Greek default. Last week, the monetary fund warned that Europe’s banks had as much as 300 billion euros at risk on various European government bonds but stopped short of saying they needed to raise that much in new capital.

Whatever the figure, it is almost certainly far more than the 2.5 billion euros that European regulators said the banks might need last spring. For some, the fact that so many European leaders are biting back proves that Ms. Lagarde has touched a nerve.”

via Lagarde, New I.M.F. Chief, Rocks the Boat – NYTimes.com.

Posted September 24, 2011 by arnoneumann in IMF

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Italy: Call in the G20? – Carnegie Endowment for International Peace   Leave a comment

“A bailout of Italy—on the order of that organized for Greece, Ireland, and Portugal—would require a loan of $1.4 trillion. Bailing out Spain would cost an additional $700 billion. Such sums, representing some 16 percent of eurozone GDP, are unlikely from eurozone members alone, even if the IMF provides one-third of these amounts. Such bailouts would not only strain the frail political support for these exercises to the breaking point, they would also call into question the debt-carrying capacity of the core European countries.

At the same time, given the systemic global implications of a financial collapse in Italy, and possibly Spain, the rest of the G20 could hardly stand idly by as another Lehman-class global credit crunch unfolded.

A globally coordinated bailout—led by the IMF and including bilateral assistance from the United States, Japan, China, the UK, and other countries—would amount to 5 percent of the rest of the G20’s GDP. It would inevitably have to carry far-reaching conditions not only on Italy, along the lines set out above, but also on the rest of the eurozone.”

 

via Italy: Call in the G20? – Carnegie Endowment for International Peace.

Posted August 7, 2011 by arnoneumann in Economic, Europe

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IMF bombshell: Age of America nears end Brett Arends ROI – MarketWatch   Leave a comment

“For the first time, the international organization has set a date for the moment when the “Age of America” will end and the U.S. economy will be overtaken by that of China.

via IMF bombshell: Age of America nears end Brett Arends ROI – MarketWatch.

And it’s a lot closer than you may think.According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now Put that in your calendar.”

So beside bragging rights does this have any other major implications ?

Indeed it does.

The main implication is that the tradition “rock” of the US dollar as the reserve currency. China coming up on top pushes ahead their desire to have a basketful of currencies as the reserve standard , of which , of course, their currency the rembii will be a part.

That has further impact on the USA economy and the world’s capital flows.

Posted May 25, 2011 by arnoneumann in Economic

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