Where does the IMF get its money from?
Discussion
It gets all of it's money, ultimately, from us, tax payers. The dwindling nuber of people who seem to believe we need to work hard to support our families and pay our own way. 
IMF Loan structure - http://www.imf.org/external/np/exr/facts/howlend.h...
They are just loan sharks on a very high level. Probably built up a reserve by getting a high percentage rate paid back to them. It says on their website they were selling off 400 tonnes of their gold in April to help with a budget deficit, as well as making up to 380 people redundant by 2011.
(as of August 28, 2008)
Loanable funds $201.0 billion
Loans outstanding $18.3 billion to 65 countries
of which: concessional loans $6.3 billion to 57 countries
Considering the Ukraine are getting 13.5 billion themselves that's quite a big increase to the outstanding loans figure, for a single loan.
They are just loan sharks on a very high level. Probably built up a reserve by getting a high percentage rate paid back to them. It says on their website they were selling off 400 tonnes of their gold in April to help with a budget deficit, as well as making up to 380 people redundant by 2011.
(as of August 28, 2008)
Loanable funds $201.0 billion
Loans outstanding $18.3 billion to 65 countries
of which: concessional loans $6.3 billion to 57 countries
Considering the Ukraine are getting 13.5 billion themselves that's quite a big increase to the outstanding loans figure, for a single loan.
james_tigerwoods said:
So what happens if the IMF run out of money - or if countries start defaulting on loans?
A disaster of biblical proportions, real wrath of God type stuff. Fire and brimstone coming down from the skies! Rivers and seas boiling! Forty years of darkness! Earthquakes, volcanoes. The dead rising from the grave! Human sacrifice, dogs and cats living together, mass hysteria! FourWheelDrift said:
james_tigerwoods said:
So what happens if the IMF run out of money - or if countries start defaulting on loans?
A disaster of biblical proportions, real wrath of God type stuff. Fire and brimstone coming down from the skies! Rivers and seas boiling! Forty years of darkness! Earthquakes, volcanoes. The dead rising from the grave! Human sacrifice, dogs and cats living together, mass hysteria! FourWheelDrift said:
james_tigerwoods said:
So what happens if the IMF run out of money - or if countries start defaulting on loans?
A disaster of biblical proportions, real wrath of God type stuff. Fire and brimstone coming down from the skies! Rivers and seas boiling! Forty years of darkness! Earthquakes, volcanoes. The dead rising from the grave! Human sacrifice, dogs and cats living together, mass hysteria! The IMF and World Bank were created in the aftermath of WWII under the Bretton Woods agreement.
The IMF is more about instantaneous bridging loans than the source of funds for problems on the scale that we have seen recently. Countries buy into a share of the total capital, and are allocated a loan facility on the basis of their contribution. The idea being that economic problems are normally localised. Clearly it doesn't work if everyone wants the money at the same time.
The world bank sets the value of the reserve currency "the dollar", against gold. Originally the pound was fixed against gold. After WWII the pound was fixed against the dollar, which was fixed against gold. In the seventies the currencies were alowed to float against each other.
The dollar is seen as a safe haven because it's most closely related to gold, and all other currencies are relative to the dollar. If they print dollars, the devaluation is less felt, than say the pound, because the dollar won't necassarily revalue against gold, but also because there are less pounds in circulation.
Gordo's speech today revealed just the edge of what it looks like the US and UK, are going to try to get the money they need to back these, frankly massive, cash inputs they have already committed to. It sounds like they are going to try to get the far east to take a bigger stake in the IMF and World Bank. Failing that they're going to have to print money, like Mugabe.
The IMF is more about instantaneous bridging loans than the source of funds for problems on the scale that we have seen recently. Countries buy into a share of the total capital, and are allocated a loan facility on the basis of their contribution. The idea being that economic problems are normally localised. Clearly it doesn't work if everyone wants the money at the same time.
The world bank sets the value of the reserve currency "the dollar", against gold. Originally the pound was fixed against gold. After WWII the pound was fixed against the dollar, which was fixed against gold. In the seventies the currencies were alowed to float against each other.
The dollar is seen as a safe haven because it's most closely related to gold, and all other currencies are relative to the dollar. If they print dollars, the devaluation is less felt, than say the pound, because the dollar won't necassarily revalue against gold, but also because there are less pounds in circulation.
Gordo's speech today revealed just the edge of what it looks like the US and UK, are going to try to get the money they need to back these, frankly massive, cash inputs they have already committed to. It sounds like they are going to try to get the far east to take a bigger stake in the IMF and World Bank. Failing that they're going to have to print money, like Mugabe.
Marf said:
dilbert said:
The dollar is seen as a safe haven because it's most closely related to gold
The dollar hasnt been gold backed for ages, if anything the main driver for dollar demand is oil.
Edited by dilbert on Monday 27th October 14:18
FourWheelDrift said:
james_tigerwoods said:
So what happens if the IMF run out of money - or if countries start defaulting on loans?
A disaster of biblical proportions, real wrath of God type stuff. Fire and brimstone coming down from the skies! Rivers and seas boiling! Forty years of darkness! Earthquakes, volcanoes. The dead rising from the grave! Human sacrifice, dogs and cats living together, mass hysteria! "On Friday, it was announced that Japan had made a loan of $100 billion to the IMF. Better to have that $100 billion in the checking account, eh? OH! And the IMF said it wasn’t in danger of running out of money… They said the needed the loan because they expect to be dealing with BIGGER problems in the future."
http://www.dailyreckoning.com/boe-follows-the-zirp...
So the IMF are getting themselves set-up to clear up Gordon's mess
http://www.dailyreckoning.com/boe-follows-the-zirp...
So the IMF are getting themselves set-up to clear up Gordon's mess
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