Neither €40 Billion nor €400 Billion can save Spain or its banks!

The problem for Spain is that country's own membership of the EU common currency inside of the Euro Zone.

Unemployment in Spain cannot drop while a non-competitive currency and labour costs within a world descending into depression, are allowed to continue!

The housing glut in Spain cannot be solved while no drop in the value of such housing can be contemplated because of unrealistic values carried by the supposedly commercial entities who financed that glut.

The EU currency cannot become competitive while Germany remains within it and fixed exchange rates continue.

The EU Commission cannot manage a solution with EU Commissioners and other EU employees of the present lowly calibre, all of whom seem to exist mainly for self-pleasure, self-enrichment and huge conceit.

The Spanish people and others in Europe, having brought this misery upon themselves, with their own votes, are the only group who can find an exit by quickly ending the entire EU nightmare!

The IMF in pitching a low figure for aid at €40 billion, is starting low in order to spare the banks upon which Mme Christine Lagarde depends, look at HER track record in Greece, the initial funding required for that ruined country and the amounts estimated as necessary today, even after having defaulted on some of its bonds.

An accurate post on Cameron, Murdoch and the IMF

The following is one of many postings on Ironies Too on 23rd July 2011, uncannily accurate on all counts, is it not?

More IMF cash for Greece? A view from Australia!

MSN has a viewpoint from an Australian point of view, linked here. The time must be approaching, regardless of the appointment of the ill-equipped Lagarde to head the organisation, where the nation's that stump up the IMF cash, such as Australia, Canada and most importantly the USA, say "Enough"!

Unhappily Britain will not be involved, with EU Pensioner, Nick Clegg now effectively running the country, due to the mangling of Cameron by Murdoch. Note this amusing cartoon from Prospect Magazine, linked here.

Labels: Cameron, Greece Bailout 2.0, IMF

posted by Martin at 12:25 P

Debate on extra funding for the IMF

The debate on IMF EU funding, which was broadcast on the Radio 4 Today programme this morning, may be listened to from the attached link here.

IMF seeks another $600 Billion for the Euro

The Euro is DOOMED! Throw no more $$$$$s or £££££s in that direction!

Greek default cannot be prevented only POSTPONED!

The € is a currency fronting what decency and democracy exists to oppose!

Link to the Bloomberg report on the latest request for extra cash which includes this:
The International Monetary Fund is proposing to raise its lending capacity by $500 billion to insulate the global economy against any worsening of Europe’s debt crisis, according to a person familiar with the talks.
The Washington-based lender currently has about $385 billion available to lend and wants to lift that to $885 billion after identifying the potential for a $1 trillion global financing gap in the next two years, the person said. To incorporate a cash buffer, that means asking its membership for $600 billion.

UPDATE at 1630 GMT. Douglas Carswell has blogged on this disastrous proposal, linked here 
to which Denis Cooper has added the following sensible suggestion and protest:

As I've argued before, MPs should not permit the government to use an Order, secondary legislation, to authorise payments to the IMF when it's clear that the money would be destined for eurozone bailouts which are illegal under the EU treaties and therefore under UK primary legislation approving those treaties.
If the government insists on doing this it should only be done through primary legislation, an Act of Parliament which expressly stated that the payments were being authorised "notwithstanding the European Communities Act 1972".

Posted on 18 January 2012 14:17 by Denis Cooper

Warning on US share of IMF funding for Italy and Spain

CNN carried a very careful and detailed report on funding for the IMF in the run-up to the New Year, neatly concentrating on an area certain to be a major issue over the coming days. The article, by Desmond Lachman, is linked from here, and it concludes as follows:

Judging by the IMF's European bailout programs to date, if Italy and Spain did have to go to the IMF for large-scale financial support, the exposure of U.S. taxpayers to those two countries could be very large. Indeed, IMF lending commitments to Italy and Spain could be of the order of $750 billion and $450 billion, respectively. Given the U.S.'s 17¾% share in the IMF, the U.S. taxpayers' exposure to Italy and Spain as a result of IMF lending could be on the order of $220 billion.

Considering the size of the exposure that might arise from IMF lending to the European periphery, the administration owes it to the U.S. public to be up front about the potential cost to the U.S. taxpayer of such lending. At the very least, the administration should call the Europeans on their attempt to bail out the European periphery by using, in significant part, U.S. taxpayer money.

Britain has not yet clarified its position over the €30 billion it is slated to provide towards the next tranche of supposed EU funding, agreed 8/9th December for two hundred billion euros.

More EU blame heading towards Britain

The tone of a report based on French sourcing in the Australian press, linked here, makes pretty clear where the Euro Group are heading next. Some quotes:

The source said the aim was still to reach the 200 billion euros target set by EU leaders at a December 9 summit, despite a British refusal to stump up its roughly 30-billion-euro share based on IMF quotas.
 
During the conference call, Britain's finance minister George Osborne set down clear conditions for any eventual aid, a London government official said, adding that the British Treasury "will not contribute to anything that is only available to euro zone countries."

The British government source added: "Nor will we participate in an increase in IMF resources that only comes from EU countries without the participation of other G20 countries" outside the EU.

Britain's finance minister George Osborne refused EU counterparts' pleas Monday for a 30-billion-euro ($USUS39 billion) loan to the IMF for use in stabilising the euro zone.
 
With a conference call still ongoing just after 6:30 pm (1720 GMT), a London government official said Osborne articulated the position of the British Treasury, which was that "we will not contribute to anything that is only available to euro zone countries."

If the figures being bandied about before the conference telephone call are to be believed AND reports that the Euro Group have approved the €150 Billion in extra IMF funding are also true, then France has just upped its commitments, already enormous, by anoth €30 Billion and Germany by another €45 Billion, assuming, of course that Spain and Italy will also meet their smaller proportionate shares of these new 150 Billions of funding!

How much longer can all this complete madness continue?

Sweden requires new IMF funding for EU be on normal IMF terms

The report from Nasdaq is here. The telphone conference call on the supposed €200 Billion new loans to the IMF amongst EU finance ministers was supposed to conclude some time ago, other news will be posted on this blog when available.

Some clarity on Britain's stance comes in this WSJ report, which states towards its close:

The IMF official said there have been efforts to persuade London to make a minimum €30 billion loan to the Fund, but following Prime Minister David Cameron's move to veto an EU treaty change at the Dec. 9 Summit, that looks unlikely.

"The U.K. understands the need to give the IMF greater firepower, but it will consider a pledge at a different forum like the G-20. The politics behind a contribution that calls on the Bank of England to be part of a euro-zone member bailout are currently prohibitive," the euro-zone official said. "We all understood that by Mr. Cameron's stance at the last summit."

Britain and France today share a BIG 30 Billion Euro question

The recent spat between Britain and France as to which economy is the most ghastly, today gets some sensible analysis from David Marsh on Market Watch, linked here.

Serious business must resume today in the two countries respective treasuries as both nations must decide whether they must each throw some €30 billion extra down the drain, in the form of a bilateral loan to the IMF, in another vain attempt to save the doomed single euro currency. A radio report from the BBC on this will be linked here shortly. (Update: BBC is not providing a link to its 0724 GMT broadcast, Irish Times coverage on the teleconference call is here)

The IMF has historically never failed to recover funds loaned by itself to countries in trouble. The IMF, however, has never before tried to prop up a currency that cannot be devalued and does not constitute the currency of a fully sovereign state. That is the reason both Britain and France would be correct to refuse the advance of these extra amounts in the form of bilateral loans, disconnected form normal IMF funding requirements and restrictions.

Read other comment from here.

Cameron denies Britain will contribute to €50 billion non-euro group IMF loan package.

The Guardian, has now reported, under the by-line of its political editor, Patrick Wintour, linked here, that the UK will not contribute to the new IMF loan package agreed at last week's EU Council meeting. I quote:

... the prime minister's spokesman said Cameron had made it clear he had not agreed to this proposal and it had not been approved by the IMF board.

Cameron said at the Cannes G20 summit he would be willing to put more money to the IMF, but indicated the additional contribution could not exceed the £40bn ceiling that has already been approved by MPs in a vote in the summer.

The UK has already committed a £30bn contribution, meaning the UK could not commit more than an extra £10bn without a further vote in parliament, something Cameron will want to avoid.

Update 1415 GMT - The Irish Times has further information on this very confused situation, linked here.

Britain's share of the €50 Billion non-euro area bilateral IMF loans agreed 9th December.

As I blogged last Friday, linked here, Britain apparently agreed to provide a share of the €50 billion loan to the IMF, finally noticed and reported upon this morning by part of the MSM, linked here.

This has also become a matter of grave concern in the Czech Rebublic, which is expected to provide €3.5 Billion (therefore surely the mind must boggle at what the liability to Britain will be,) as I also blogged about here.

It was obvious from the outset that something fishy was going on regarding the IMF (witness William Hague on the Today programme on Friday morning) and I vented my frustration in trying to get at the facts in an early posting on the deal, linked here, it cannot be mere incompetence that has kept this matter out of the area of public debate for coming up to a week! What do we pay the BBC Licence Fee for exactly?  (Update: Angela Merkel's press conference I seem to recall also mentioned these amounts).

(Update 0745 GMT: John Redwood discusses the package on his blog this morning, linked here, I commented as follows:

Posted December 14, 2011 at 7:44 am | Permalink

Your comment is awaiting moderation.

There was an agreement involving the non-Euro Group countries apparently and that related to €50 billion of bilateral loans to the IMF. I spent last Friday trying to get the facts on that and only managed to learn that the Czech Rebublic share was €3.5 billion, as revcealed by President Klaus, later confirmationof the package came from Mme Lagard. Links and posts on this search are on my blog.

Secrecy such as that seemingly deployed here is a huge threat to our democracy, hopefully some MPs can shake the facts on this loose in Parliament today).

IMF funding is bilateral loans - Lagarde

At last some clarity on the IMF 200 Billion extra financing from Europe, Reuters  linked here, from which I quote the following:

EU countries also agreed to provide up to 200 billion euros ($266.24 billion)in bilateral loans to the International Monetary Fund (IMF) to help it tackle the crisis, with 150 billion euros ($199.68 billion) of the total coming from the euro zone countries.
"I appreciate this demonstration of leadership from Europe, and I am hopeful that others will also do their part," Lagarde said in a statement.
The nine non-euro states said they would consult their parliaments, where appropriate, on taking part in the process.
Britain, which has not adopted the euro currency, did not join in the agreement.

What is the role for the IMF in new non-EU deal?

Chasing around the internet trying to find out what part the IMF will, or will not play, in whatever was, or was not agreed by some EU members in the past two days of meetings could create insanity.

I will therefore leave no links until the IMF itself issues some clarification, which is already long, long, overdue!

IMF's Lagarde flees her French Finance Ministerial aftermath.

Things look really, really bad for the euro currency next week! Mme Christine Lagarde, MD of the IMF and former leading accomplice in the EU debacle, has arranged to be in Brazil, Peru and other places well away from the aftermath! Read here.

Britain's taxpayers duped of a further £20 Billion

Douglas Carswell MP had the slime ball that is Britain's Prime Minister, on the ropes in the House of Commons this afternoon, as I will link here in about 3 hours when Hansard has the verbatim report! Link to Hansard is now here.

Meantime the essence of the matter may be found on the blog of that MP, linked here.

Berlusconi turns down IMF Loan

The FT carries the report, while most eyes are upon Athens, linked here. Note the following passage that ties in nicely with the Troika mentioned in British PM Cameron's paper to the G20 on Global Governance, presented earlier today, as follows:

The addition of IMF monitors, who will publish quarterly reports on Italy’s progress, makes the mission almost identical to so-called “troika” teams of Commission and IMF evaluators who conduct reviews of the eurozone’s three bail-out countries.

My post to John Redwood's Diary this morning on the IMF

The last post of yesterday on this blog, immediately beneath this and also here, together with the post by John Redwood, to which this posting is a response, linked here, are both best read before considering the following remarks:

Martin Cole

Posted November 4, 2011 at 7:43 am
Your comment is awaiting moderation.

All very good factual points, very gently made. I was harsher in my own comments, on the same topic, made last evening, as I could not find it within myself to put the argument solely into economic terms. I believe one has to pose these questions concurrently with addressing the even more worrying fact that national democracies, were being destroyed all across the EU at the same time as the economic problems were being allowed to grow and fester.
Although the argument about whether IMF aid should be conditional upon democracy is far too big for this space, surely all the countries within the EU, witnessed by their signatures to the EU Treaties, cannot deny that concept. I believe the democracies within the G20, if they today decide to boost IMF resources for the Euro Zone, should stipulate that any such funding is conditional on basic democratic rights and representation being established across the Euro Zone ( preferably direct and a la Swiss) before economic governance is imposed!

Common crewcuts - The IMF is driving the EU towards tyranny.

I would ask you to consider the opening sentence to a news report of 6th October, from Deutsch Börse Group, linked here, this morning:

Europe should force all its large banks to recapitalize according to common standards, a senior International Monetary Fund official said late Wednesday at a conference in Brussels.

This co-incides with widely circulated reports that the German banks have been "persuaded" by Angela Merkel, the German Chancellor, to accept a 60% "voluntary" haircut on the Greek senior bonds.

Has anybody circulating amongst the leaders of the world really grasped the full potential of the absolute end horror which accepting the IMF suggestion would involve. Firstly, "Europe" does not exist as an entity, as is presumed in the statement, BUT if it is intended that the reality of hegemony delivered by the sheer economic weight of Germany is being implied, then the widely circulated reports quoted in the paragraph immediately above this, surely rapidly confirms the validity of the IMF assumption! After all the IMF is at the centre of this growing mess.

President Sarkozy meeting with IMF Head Mme Lagarde

France 24 has the news report, linked here.

Why do the media keep referring to an "expanded" EFSF?

When what became the EFSF was first announced, it was pitched at One Billion Dollars, as a "shock and awe" announcement, see the 10th May 2010, NYT report linked here. One billion US Dollars was the equivalent to some €560 million, (corrected - thanks IPJ).

In normal EU style, those making the deal had not allowed for the difficulties that would lie ahead and in order to raise funds on a AAA credit rating basis the actual amount that eventually could be lent was limited to €445 Billion on the amount committed by Euro Group members.

The 21st July 2011agreement, presently being voted upon in the Dutch Parliament (leaving Slovakia and Malta remaining to still give their parliamentary OK) does not expand the money available from the EFSF, which remains around €440 billion, of which roughly half has been advanced to Greece, Portugal and Ireland. The areas of what the funds may be used for have been extended, to relieve the pressure on the illegal bond purchases (expanded today as a parting gesture from [ttitpb] Jean-Claude Trichet).

More EU sleight of hand and media manipulation I am afraid. Get ready for more, following today's meeting in Berlin of the main EU players with the IMF, with various wild and unsubstantiated statements about bank re-capitalisation. The fact that no Europeans can now be trusted is becoming the centre of the problem!

Olli Rehn flounders again!

Reuters has the best summary that I have found on the complete lack of any progress over the weekend on the Euro crisis, linked here. This quote from their report sums it up very well:

A senior European official hinted that kind of firepower was being contemplated.
"We need to find a mechanism where we can turn one euro in the EFSF into five, but there is no decision on how we could do that yet," the official said.
Financial markets signaled some doubts that bolder steps would emerge soon given a lack of details from weekend comments and differences between euro zone leaders.

The Irish Times, uniquely involved in the Euro mess and following it in the English language, also picks Olli Rehn to open their report but significantly gives him very little coverage in the article, read here. Their report indicates that the IMF head Christine Lagarde, see post beneath this is aware that more funds from the IMF could prove poblematic:

IMF managing director Christine Lagarde said it was “ready and it will deliver on any type of resources necessary and available to all members . . . By resources I mean everything that the fund can deliver, from policy advice, from being the trusted adviser and the facilitator, to organising facilities that are needed.”