The International Monetary Fund wants the rules of the IMF changed so it can lend directly to banks and underwrite a rescue of the Spanish financial system without increasing Spain’s government debt. If the IMF is permitted to do so, however, the banking system’s control would pass to the IMF and such an increase in powers would be momentous. Here’s why. Words: 755
So say edited excerpts from an article* posted at www.TheDailyBell.com. Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.
The article goes on to say, in part:
Once again the cry goes up to preserve the banking sector. Is this necessary? In a free-market economy such failing institutions would shut down of their own accord. That’s not the way it works in the modern world, however, and this is too bad because propping up such entities only makes the larger economic distortion worse and yet, in the modern world, financial institutions are increasingly “too big to fail.”
Central banks around the world use large commercial banks as distribution points for the money they create and this is why the powers-that-be are loath to shut them down. Of course, the money could actually be distributed directly to the citizenry but this would defeat the reality of the current monetary racket, which is to distribute money into circulation via debt. It is the banks that perform this function by “lending” and thus these banks are a very important part of the larger system….
The freewheeling Spanish cajas that used to make up to 50 percent of Spanish banks have been shut down. Only the larger, regulated banks remains standing. This is indeed the way the world works. Concentration and bigness are constantly encouraged – and the end result, when it comes to the financial sector, is a group of “too big to fail” entities that must be supported at taxpayer expense.
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One finally begins to question the coincidental evolution of this abiding enlargement. Central banks themselves contribute to it by printing an overabundance of money that causes first booms and busts. During the deleveraging part of the cycle, large companies and institutions are purchased for very little money and the centralization continues. Because the distortion has been going on for so long – a hundred years or more – economies around the world have reached a kind of saturation point. So many industries have been created that would not exist otherwise, that the world is chock full of overcapacity and unemployment. These kinds of imbalances are a direct result of monetary overprinting – and they facilitate what the power elite desires, which is ever-closer global integration.
The power elite, in our view, is driving the world toward global governance at an alarming rate and using financial crises as a tool to create momentum for this state of affairs. The Euro-crisis is part of this larger paradigm. In fact, top Eurocrats are on record as anticipating the current crisis and intending to take advantage of it to build a closer union that could then serve as a stepping-stone to something larger still.[A recent Economist article states]:
“With three smaller European countries already receiving international bailouts, the larger economies of Spain and Italy have become the critical test of whether the euro region can revive its economy and avoid dragging down global trade and economic growth.
The IMF wants the rules of the fund changed so it can lend directly to banks – and underwrite a rescue of the Spanish financial system without increasing Spain’s government debt.”
We see again…that the powers-that-be do, in fact, use financial crises as a way of increasing control. In this case, the IMF itself is poised to receive greater powers and if the IMF can lend directly to banks, the banking system’s control passes to the IMF. This news – buried toward the end of the article – is momentous. Once again, we see that the impetus toward globalization is increasing. The IMF and its backers are determined to gain more power for global facilities.
We read as well, toward the end of the article, “The suggestion is controversial, and it would amount to asking taxpayers in more financially stable nations such as Germany to bail out private companies elsewhere in Europe.” It may be controversial but this is exactly what the elites wish to happen.
Out of chaos …order.
*http://www.thedailybell.com/3832/IMF-Taxpayers-Dont-Let-Them-Fail-Spanish-Banking-on-Brink- (To access the articles please copy the URL and paste it into your browser.)
Editor’s Note: The above article has been has edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
The International Monetary Fund has just released its 2012 World Economic Outlook, sub-titled ‘Growth Resuming, Dangers Remain’. I have read it in full and present a brief synopsis of it below which will save you more than 1 hour of your time doing so. I have also commented on some of their statements to provide greater clarity and understanding of what the report conveys. Words: 674
The European economic situation is explained very simply in the illustration below. Take a look.
On the surface, Spain’s debt woes have many things in common with those of Greece – bad age demographics and a toxic bank system – but you’ll note that, as we tackle each of these, Spain is in fact in far worse fiscal shape than Greece. [Let’s take a look.] Words: 700
I continue to see articles in the media claiming that Europe’s problems are solved. Either the folks writing these articles can’t do simple math, or they don’t bother actually reading any of the political news coming out of Europe [so let me present 3 data points that guarantee Europe will collapse at some point in the near future]. Words: 722
In this article I lay out precisely why the coming Crisis in Europe will be THE Crisis I’ve been forecasting for the last 24 months, why it will have dire consequences on the U.S. and why the Fed can do absolutely nothing to stop it this time round. Words: 1334
When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival…[Let me explain this further by reviewing the 7 major problems facing the U.S. (and thus the world) and how they all will lead to problem #7 – devolution.] Words: 1520
Everyone must be wondering where this “unprecedented global financial crisis”, (the World Bank’s words), is heading. What follows, for what they are worth, are my cogitations on this crisis. Words: 1641
Spain is an absolute disaster on a level that [it seems] few, if any, analysts can even grasp. [Let me try to.] Words: 428