Monday, July 19, 2010

IMF Boost to further strain Britain's resources

A report that the IMF will seek to increase its lending capacity by a further 250 billion dollars to a total of a trillion is bad news for Britain as a likely future recipient for the funds. The magic roundabout of debtor nations underwriting loans to international organisations coming to their aid is already in danger of reaching absurd proportions, as proven by the credit downgrading of Ireland this morning! If the contributions to the extra IMF cash are called upon in the same ratio as detailed here, reported to be decided at the November G20 meeting, then the UK share will be around 5% or 12.5 billion US dollars. The Slovakian decision to not agree to contribute cash to the Greek bailout will almost certainly prove not to be an isolated case when real transferable funds, rather than pompous intenational verbiage and fudged agreements over expensive meals are eventually a necessity. Time for another shock and awe EU package to save the PIGS financed by the self-same sovereign debtors (posing as the EU) perhaps!